India’s GDP grows by 8.4% in July-September quarter of 2021-’22
Like in the first quarter (April-June), the growth rate was aided by the base effect of a contraction in the economy last year.
India’s Gross Domestic Product grew by 8.4% during the second quarter [July-September] of the 2021-’22 financial year, government data showed on Tuesday. This is the fourth consecutive quarter that the growth rate has remained in positive territory last year’s slump due to the coronavirus-induced lockdown.
However, the second quarter growth is much lower than the 20.1% seen in the April-June quarter of the current fiscal. The first quarter numbers were built on a low base after a sharpest-ever contraction of 24.4% in the first quarter of the previous financial year.
Economic data like GDP growth rate are calculated on a year-on-year basis. So, a low growth rate in the previous year leads to a low base for the current year’s numbers.
Hit by a nationwide lockdown due to the coronavirus pandemic, India’s economic activities were stalled during the April-June period last year. For the entire financial year of 2020-’21, the Indian economy contracted by 7.3%.
The growth registered during the second quarter of this financial year is also aided by a low base, as the economy had contracted by 7.4% during the July-September period last year. An uptick in the pace of vaccinations against the coronavirus and easing of localised restrictions also led to economic turnaround, reported Bloomberg Quint.
The mining sector grew at the fastest pace of 15.4%, when compared to the second quarter of the last financial year. The manufacturing sector growth rate was 5.5%, while construction grew by 7.5%. These two sectors had been hit the worst during last year’s lockdown.