India's GDP climbed by 8.4 per cent in the three months ended September, above forecasts, thanks to higher government expenditure, exports, and agriculture.
Although the September quarter GDP was marginally at ₹35.61 trillion in the quarter ending in September 2019 which was marginally lower than ₹35.73 trillion in 2011-12 prices. It means the latest growth figure is not just because of a favourable base effect, as the economy was battered by the Covid-19 pandemic.
India witnessed slower growth in GDP in the second quarter of the current fiscal year than the previous quarters 20.1 per cent expansion, however, it was still better than the 7.4 per cent drop that we witnessed from July- September of the year 2020, according to the official data released on Tuesday.
This figure represents a solid rebound in private consumption expenditures, driven by the economy's unlocking, the pandemic's decreasing severity, and considerable progress on vaccination in the second quarter of the Financial year of 2022.
According to a Bloomberg survey of economists, growth was supposed to be 8.1 per cent. The Reserve Bank of India's monetary policy committee anticipated 7.9 per cent GDP growth in September 2021 during its October meeting. The central bank however has estimated that most experts responding to Tuesday's statistics expect the Indian economy to grow at roughly 9.5 per cent in the year to March 2022.
The latest GDP data show the Indian economy continued recovering “robustly,” and just because of the base effect, it cannot be called “less-noteworthy”, India’s chief economic adviser Krishnamurthy V Subramanian said. The growth momentum is sustained and “India is likely to have double-digit growth in 2021-22, 6.5-7% in the next (fiscal) year, and 7% thereafter on seminal second-generation reforms,” he said
Like last year Indian Agriculture sector seems to have done well in helping the Indian GDP maintain a good level.
However much potential still needs to be unearthed in the agricultural sector as even though 58 % of our population works in the field of Agriculture, the Agriculture sector is still only able to contribute to 19 % of the Indian GDP.
