Economy sees record quarterly growth

INDIA’S economy rebounded in the April-June quarter even while a devastating second wave of Covid-19 swept the country, with growth of more than 20 per cent, compared to a year earlier driven

sdijvoisdby a surge in manufacturing and higher consumer spending.

Asia’s third-largest economy slumped 7.3 per cent in 20202021, putting it among major economies hit hardest by the pandemic, but growth was less affected by April-May’s second wave because the lockdown measures adopted then were less stringent.

Gross domestic product grew 20.1 per cent in April-June compared with the same period a year earlier, with manufacturing and construction the main drivers, data from the statistics ministry showed on Tuesday (31).

That compared with a record contraction of 24.4 per cent in the same quarter a year earlier.

Annual growth of 49.6 per cent in manufacturing during the three months to June compared to 6.9 per cent growth in the previous quarter showed new antiCovid-19 measures adopted in April-May had only a limited impact on activity.

Exports grew 39 per cent compared to the same quarter last year, contributing 23.7 per cent of the, indicating strong global demand for Indian goods.

Unlike more advanced economies, which have provided massive stimulus to support consumers, prime minister Narendra Modi has opted to raise infrastructure spending and pursue privatisation of state companies and tax reforms to bolster India’s mid-term growth prospects, while providing free food grains to the poor.

The Reserve Bank of India has forecast annual growth of 9.5 per cent in the current fiscal year.