New Delhi: Economic growth jumped to the highest record in the April-June quarter due to a low base and rebounded in manufacturing and construction, as well as strong agricultural growth, which remained strong throughout the pandemic.
Data released by the National Statistics Office (NSO) on Tuesday showed GDP growth rose 20.1% in three months to June, the first quarter of fiscal year 2021-22, compared with a record contraction of 24.4% in the period last year.
It was also higher than the growth of 1.6% which was recorded in January-March 2021.
Experts said while recovery was to collect momentum, the first quarter number must be interpreted with several warnings because the economy still recovered the impact of lockdows and curb to prevent the spread of covid infection 19.
The newest quarter of June is close to the bank of India’s bank reserves of 21.4%.
In series of indicators in recent months have shown that some sectors have rebounded strong even though some sectors, especially in the crucial service segment, have not fully recovered.
“Data Q1: 2021-22 reaffirms the government’s prediction of the V-shaped recovery that will occur last year at this time.
Increased by 20.1% in GDP – although the second wave of intense in the month of April-May – highlighted sustainable economic recovery , “said Krishnamurthy Subramanian, head of an economic advisor.
Subramanian has consistently maintained since last year that the economy will hold a V-shaped recovery regardless of locking.
The quarter June number is also expected to validate government trust over a sharp rebound and its pursuit of reforms to increase growth towards the background of a raging pandemic.
Economists said India remained one of several certain countries that had witnessed growth (year-to-year) for three consecutive quarters and was one of the fastest growing economies during the April-June quarter.
The manufacturing sector grew 49.6% year-to-year in the June quarter, compared to contraction 36% in the previous quarter, while the construction sector rose 68.3%.
The agricultural sector grew 4.5% in three months to June compared to 3.5% posted in the early period this year.
While some indicators show signs of strong recovery, the overall economy still has a long way to catch up with the pre-pandemic level.
Aditi Nargging, the main economist in ICRA, said that the sharp-year-old expansion in the June quarter was misleading, with a sequential slowdown by 16.9% over Q4 FY2021 and a shortage of 9.2% relative to the level of pre-covid Q1 FY2020.