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India's GDP growth expands 8.4% in July-September quarter

06:05 PM Nov 30, 2021 | FPJ Web Desk

India's gross domestic product (GDP) in the second quarter of the fiscal year 2021-22 grew at 8.4 percent, official data released on November 30 showed.

The GDP growth in April-June quarter this fiscal stood at 20.1 per cent. The Indian economy had contracted by 24.4 per cent in April-June last year.

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The gross domestic product (GDP) had contracted by 7.4 per cent in the corresponding July-September quarter of 2020-21, according to data released by the National Statistical Office (NSO).

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GDP at Constant (2011-12) Prices in April-September 2021-22 (H1 2021-22) is estimated at Rs 68.11 lakh crore as against Rs 59.92 lakh crore during the corresponding period of previous year, showing a growth of 13.7 per cent in H1 2021-22 as against a contraction of 15.9 per cent during the same period last year, it stated.

The government had imposed a nationwide lockdown at the onset of the COVID-19 pandemic last year.

China has recorded a growth of 4.9 per cent in the July-September period of 2021.

India Inc reaction

Sandeep Bagla,CEO,TRUST Mutual Fund

"The GDP growth was at 8.4 percent, as per expectations. One surprise was the lower growth in manufacturing sector. Seems to suggest that the output gap is not narrowing as swiftly. The MPC meeting in December will have to consider the growth in GDP as well as the possibility of slowdown due to the new virus strain."

Rajani Sinha, Chief Economist and National Director - Research, Knight Frank India

“The improvement in GDP growth in Q2 FY22 is on expected lines. With increased vaccination and economy moving back to normalcy, most high frequency economic indicators have bounced back above pre-COVID levels. Corporate performance as reflected by quarterly results have also been showing healthy improvement in the economy.

"While consumption has recorded an improvement, a more broad-based consumption recovery would be critical for sustainable and inclusive growth. For that to happen it will be critical for the unorganized sector and the MSME segment to also bounce back quickly. While capacity utilization levels would have improved in the last quarter, private investment may still take time to recover as corporates and banks remain risk averse given the looming uncertainties. High commodity prices and global supply bottlenecks would pose a challenge for the manufacturing sector. The emergence of the new COVID variant has infused uncertainty in the system. If this uncertainty lingers or aggravates, it would adversely impact business and consumer sentiments, with repercussions on the economic growth”.

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