{"id":123967,"date":"2021-12-14T15:33:55","date_gmt":"2021-12-14T15:33:55","guid":{"rendered":"https:\/\/fin2me.com\/?p=123967"},"modified":"2021-12-14T15:33:55","modified_gmt":"2021-12-14T15:33:55","slug":"india-economy-expands-8-4-in-september-qtr","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/india-economy-expands-8-4-in-september-qtr\/","title":{"rendered":"India Economy Expands 8.4% In September Qtr"},"content":{"rendered":"
India’s economic growth remained robust in the September quarter, preliminary data from the government showed Tuesday, after the pace of expansion hit a record in the previous three months boosted by a low base-effect due to the coronavirus<\/span> pandemic last year.<\/p>\n Gross domestic product grew 8.4 percent year-on-year in the three months to September, the statistics ministry said. That was in line with economists’ expectations.<\/p>\n In the same quarter of 2020, the economy<\/span> had contracted 7.4 percent as the coronavirus ravaged economic activity across the country.<\/p>\n In the April to June quarter this year, the economy grew a record 20.1 percent versus a 24.4 percent contraction in the same period last year when the government imposed one of the most severe lockdowns to curb the spread of the Covid-19 pandemic.<\/p>\n The gross value added increased 8.5 percent year-on-year in the September quarter.<\/p>\n The latest surge in growth is in tandem with the pick up in economic activity as public confidence was boosted by relaxation of restrictions, thanks to a sharp fall in new infections and increased vaccination.<\/p>\n Citing its own calculations, Capital Economics said the Indian economy grew by around 12 percent from the previous quarter, underpinned by a strong rebound in household consumption and investment.<\/p>\n The firm estimated that GDP recovered all its losses from the second wave and was a touch above its pre-virus level last quarter.<\/p>\n However, the recovery has entered a slower phase as recent data suggest that the reopening boost faded, Capital Economics said.<\/p>\n Supply bottlenecks including the global semiconductor shortage that has weighed on vehicle production, and coal shortages are likely to have taken a toll on industry this quarter, Capital Economics economist Shilan Shah said.<\/p>\n Shah said the downside risks are rising and, with vaccination coverage still very low, there remains a risk of renewed virus outbreaks.<\/p>\n “The new Omicron strain of the virus detected in southern Africa could end up being the factor that crystallizes these concerns if it reaches India,” the economist said.<\/p>\n “Given the downside risks, it seems highly likely to us that the RBI will keep policy accommodative for a while longer yet.” <\/p>\n