Q2 GDP growth at 8.4%, government sees double-digit rise in FY22

NEW DELHI: The country’s economy grew by 8.4% in the July-September quarter, broadly in line with expectations, led by a steady farm sector and double-digit expansion in public administration, defence and other services as the impact of the base effect waned and weighed on the overall numbers.

Data released by the National Statistical Office on Tuesday showed the economy grew an annual 8.4% in the three months to September, slower than the 20.1% expansion recorded in the previous quarter but above the 7.4% contraction in the second quarter of the previous year.

The Indian economy has recovered swiftly after the bruising impact of the lockdown to prevent the spread of Covid-19 in the first quarter of 2020-21, when it contracted a record 24.4%.

While some economists said the disaggregated data for the September quarter was far from convincing, the government asserted that the economic recovery has continued robustly in the second quarter and the base effect does not make it less noteworthy.

Chief economic adviser Krishnamurthy Subramanian said the economy was likely to have double-digit growth in 2021-22, 6.5% next year and above 7% thereafter.

He said the impact of the second-generation economic reforms unveiled by the government will continue to unfold and strengthen the recovery.