AMN / NEW DELHI
India’s economy grew at a record 20.1 per cent year-on-year in April-June quarter, official data on Tuesday showed, rebounding from a deep slump last year, helped by improved manufacturing in spite of a devastating second wave of Covid-19 cases.
The read-out for June quarter was in line with the 20.0 per cent growth forecast of analysts in a Reuters poll, and much higher than 1.6 per cent growth rate for the previous year.
The economy had contracted 24.4 per cent in the same quarter a year earlier.
China has recorded a growth of 7.9 per cent in the April-June period of 2021.
Chief Economic Advisor (CEA) K V Subramanian said that India’s economy is all set for robust growth on the back of government’s capex push, structural reforms, rapid inoculation and financial sector cleanup and activities would recover to pre-Covid levels by the next year.
Further, with regard to tapering by US Federal Reserve, he said that it should not be that much of a concern for India. “Whenever tapering happens, India will be in a very good position to withstand it. India’s macro-economic fundamentals much stronger now than post global financial crisis,” the CEA said.
While giving a statement on the latest GDP figures, Subramanian on Tuesday said that the increase in the GDP growth despite the intense second wave during April-June period is indicative of continued economic recovery. He said the recovery was mainly supported by rapid surge in inoculation drive, which had covered 24 per cent of India’s population during the period.
He further said that the GDP growth for the current financial year (FY22) should be around Budgeted target of 10.5-11 per cent, and that economy will be back to pre-covid levels by next year.
“GDP data for the first quarter 2021-22 re-affirms the government’s prediction of an imminent V-shaped recovery that we had made last year this time. The recovery is supported by rapid surge in vaccination coverage from 4.7 per cent of the total population in Q4 of 2020-21 to 24.5 per cent in Q1 of 2021-22,” Subramanian said
India’s GDP grew 20.1 per cent in the April-June quarter of this fiscal, attributed to a low base in the year-ago period.
“India is poised for stronger growth from structural reforms enabling efficiency and productivity; government’s capex push to enable private investment and financial sector clean-up and reforms,” he highlighted.
“External sector is providing a stable cushion. Forex reserves continue to grow. Despite supply-side restrictions due to pandemic, inflation was much lower than during global financial crisis because of supply-side measures,” Subramanian added.