Bhubaneswar: The gross domestic product (GDP) of India has bounced back in April to June quarter of 2021-22 fiscal compared to a year earlier due to increasing economic activities.
The GDP grew by 20.1% in the first quarter of this fiscal while it had nosedived by 24% during the same period last year when the economy of all countries around the world witnessed a major slump due to COVID pandemic. The Indian economy, which was one of the worst-hit, shrank by 7.3% in last financial year.
Private investments and consumer spending helped boost the so-called ‘V-shaped’ recovery, BBC quoted the Central government’s chief economic adviser KV Subramanian as saying. A V-shaped recovery is a sharp fall of economy which quickly bottoms out and makes a fast recovery.
According to economic experts, manufacturing and construction sectors were primarily responsible for driving the growth. But the GDP growth in the first quarter of this fiscal missed the 21.4% projection of the Reserve Bank of India (RBI).
The experts estimate that India will maintain the growth path with further easing of economic activities due to weakening of COVID spread. But consumer spending remains an area of concern as it is yet to reach the pre-pandemic rate.
With Prime Minister Narendra Modi focusing on investment in infrastructure, privatisation of state-owned businesses and tax reforms, the upward movement of the economy can be maintained unless there is a major setback from the third wave of the pandemic, the experts opined.