India's Gross Domestic Product (GDP) grew at 8.4 per cent in the July-September quarter of the financial year 2021-22, thanks to robust manufacturing and services sector demand, and low base and record vaccination coverage, the estimates by the National Statistical Office (NSO) of the Ministry of Statistics and Programme Implementation (MoSPI) released today show. The relaxations in localised lockdowns also helped the economy grow during the second quarter of the financial year.
"GDP at Constant (2011-12) Prices in Q2 2021-22 is estimated at Rs 35.73 lakh crore, as against Rs 32.97 lakh crore in Q2 2020-21, showing a growth of 8.4 per cent as compared to 7.4 percent contraction in Q2 2020-21," the MoSPI report said.
The gross value added (GVA) for the July-September quarter stood at 8.5 per cent, estimates by the NSO show. "Quarterly GVA at Basic Prices at Constant (2011-12) Prices in Q2 2021-22 is estimated at Rs 32.89 lakh crore, as against Rs 30.32 lakh crore in Q2 2020-21, showing a growth of 8.5 percent," the report said.
At current prices, GDP grew at Rs 55.54 lakh crore in Q2 FY22 against Rs 47.26 lakh crore in Q2 FY21, thereby growing at 17.5 per cent as 4.4 per cent contraction in Q2 FY21. GVA, on the other hand, stood at Rs 49.70 lakh crore in Q23 FY22 against Rs 42.54 lakh crore in Q2 FY21, thereby growing at 16.8 per cent.
The country's GDP had shrunk 7.3 per cent during the same quarter last year, after the economy suffered a major blow in the wake of a strict lockdown due to the first coronavirus wave.
In the first quarter of the current fiscal year, India's GDP had grown at a record 20.1 per cent year-on-year over a low base during the same period a year before. India's GDP had contracted by 24.4 per cent during Q1 FY21 after the government resorted to stringent lockdowns for around 21 days.
GDP is derived as the sum of the gross value added (GVA) at basic prices, plus all taxes on products, less all subsidies on products. The total tax revenue used for GDP compilation includes Non-GST Revenue and GST Revenue.
Earlier, the analysts at different financial institutions had predicted the Indian economy to grow in the range of 7.8-8.5 per cent in the second quarter of the fiscal year.
For Q2 FY22, economists had scaled up their projections on the back of better-than-expected government spending, robust manufacturing activity and exports.
Also read: Economists peg India's Q2 GDP figures close to 8%
ICRA had revised its Q2 GDP forecast by 20 bps to 7.9 per cent, benefitting chiefly from the surge in Centre's spending in September. CARE Ratings revisited the GDP forecast for the quarter ended September and estimated the growth between 8.1 and 8.3 per cent, respectively.
The Reserve Bank of India had also predicted the GDP growth forecast at 7.9 per cent for the second quarter.
Most high frequency economic activity indicators, including the purchasing managers' index, e-way bills, non-oil and non-gold imports, had fared better in the second quarter of the fiscal.
Earlier, HDFC Bank in a note had said the GDP could grow by 9.4 per cent year-on-year in the financial year FY22, adding the economy is expected to reach pre-pandemic output levels by the end of Q4 FY22.
Also read: India's GDP expected to grow at 8.5% in 2022: NASSCOMAlso read: GDP growth estimated to be 8.1% in Q2 FY22: SBI Ecowrap