India's GDP grows 8.4 per cent in Q2 2021-22

India's GDP grew by 8.4 per cent in the second quarter,July-September of 2021-22 fiscal year, compared to a 7.4 per cent contraction a year ago. According to official data, this shows that India’s effort to boost consumption through government spending and low-interest rates is paying off, with the economy gaining strength just as a new coronavirus variant emerges as the top threat to a global recovery. According to the Union ministry of statistics and programme implementation, the gross domestic product (GDP) at constant prices in Q2 2021-22 is estimated at Rs 35.73 lakh crore, as against Rs 32.97 lakh crore in Q2 2020-21, showing a growth of 8.4 per cent as compared to the 7.4 per cent contraction in this quarter a year ago.

The recovery is “led by the services sector, with individual mobility back to pre-Covid levels, and ultra-accommodative financial conditions,” as well as higher government expenditures.India loosened fiscal and monetary policy to power through the pandemic-induced slump and has vowed to keep it like that for as long as necessary to support growth. Union finance minister Nirmala Sitharaman has made infrastructure spending a priority ahead of the February budget, where she will give an annual plan of the government’s expenditure and revenue goals.