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Economic growth rate 8.4% in the second quarter, the status of the fastest growing economy remains intact; 8 things

Economic growth rate 8.4% in the second quarter, the status of the fastest growing economy remains intact; 8 things

New Delhi:
Economic Growth Rate: The economic growth rate of the country was 8.4 percent in the second quarter of the current financial year 2021-22. With this, the growth rate has crossed the pre-Covid level. With a better than expected growth rate, the Indian economy is on track to achieve the fastest growth among major economies this year. According to official data released on Tuesday, the economic growth rate in the July-September quarter has slowed down compared to the first quarter’s growth rate of 20.1 percent. However, this is better than the decline of 7.4 percent recorded in the same period last year.

8 Big Things

  • Severely affected by strict lockdown in April-June 2020 economic growth rate There was a big drop of 24.4 percent in This is the reason why strong growth was registered in the first quarter of the current financial year due to low comparative base. With economic activity getting back on track since the second wave of the pandemic in mid-April this year, this is the fourth consecutive quarter that the growth rate has been positive. At the same time, the economic growth rate in the first two quarters of the last financial year was negative.

  • The GDP figures for the second quarter of the fiscal year 2021-22 show a better recovery in private consumption expenditure amid the easing of the pandemic’s impact and a spurt in vaccination. Government expenditure in the second quarter increased by 8.7 percent over the same quarter last year and consumption was boosted by lower interest rates.

  • The agriculture sector continues to perform well in the economy and has registered a growth of 4.5 percent for the second consecutive quarter. The growth rate of the manufacturing sector stood at 5.5 percent. This explains the spurt in domestic demand and exports. Construction, trade, hotel, transport and financial services sectors registered a growth of 7-8 per cent, with a pick-up in economic activity. According to the data, there was a strong growth of 17.4 percent in government services in the second quarter. It also includes public administration and defence.

  • GDP in absolute terms stood at Rs 35,73,451 crore in the July-September quarter. This is higher than the size of Rs 35,61,530 crore in the corresponding quarter of FY 2019-20. GDP had come down to Rs 32,96,718 crore in the July-September quarter last year during the restrictions imposed due to the pandemic. The rate of Gross Value Added (GVA) stood at 8.5 per cent in the July-September quarter and the figures indicate broader expansion across sectors.

  • Chief Economic Adviser KV Subramanian said that the country’s economic growth rate is expected to be in double digits in the current financial year on the back of increasing demand and strong banking sector. “The overall growth rate in the first half was 13.7 per cent. In such a situation, the growth rate may remain in double digits this year with a little over 6 per cent growth in the current and next quarters. “We expect the growth rate to be 6.5 to 7.0 per cent next year and above 7.0 per cent after that,” Subramaniam said.

  • Former finance minister and senior Congress leader P Chidambaram in his response said, “The situation of ‘V’ shape (rapid growth after decline) has not come yet. Many areas are still grappling with the problem and they need help for revival.

  • The GDP at constant prices (2011-12) is estimated at Rs 68.11 lakh crore in the first half of 2021-22 i.e. April-September period as against Rs 59.92 lakh crore in the corresponding period last year. In this way, it shows a growth of 13.7 percent in the first half of the current financial year. While it had declined by 15.9 per cent in the same period of the previous financial year.

  • According to NSO data, the Gross Value Added (GVA) growth in the manufacturing sector increased to 5.5 per cent in the second quarter of 2021-22. Whereas in the same period a year ago, it had declined by 1.5 percent.

(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)

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