Re-emerging from a Covid slump, India’s economy logged the highest-ever quarterly growth of 20.1% in the April-June period aided by a brilliant performance by the manufacturing and constructions sectors and a low base effect of last year.
The economy had witnessed a record contraction of 24.4% in the same quarter a year earlier.
Manufacturing grew 49.6% in the April-June period compared to a contraction of 36% a year ago. The construction sector grew 68.3% as against a contraction earlier. Mining expanded over 18%. Electricity, gas, water supply and other utility services segment grew by over 14% as against 9.9% contraction a year ago.
Trade, hotel, transport, communication and services related to broadcasting grew by 34.3%.
The GDP at constant price was estimated at Rs 32.38 lakh crore, as against Rs 26.95 lakh crore in April-June last year.
Notwithstanding the second wave of Covid-19, Chief Economic Adviser K V Subramanian said the economic growth during the current financial year ending March 2022 will be around 11% as projected in the latest Economic Survey.
Economists, however, warned that private consumption and investment, the two main drivers of growth remained below their pre-Covid levels.
“Manufacturing and construction were the key drivers of GVA growth, whereas on the expenditure side, private consumption and investment powered the YoY turnaround," said chief economist Aditi Nayar of ICRA.