Good signs about the economy, economists estimate GDP growth rate to be 7-9 percent

After the decline in Kovid infection, there was some relaxation in the lockdown as well as the vaccination campaign also gained momentum. Due to this there was a boom in economic activities.

Chief Economist Madan Sabnavis said that the main driver of economic growth is the manufacturing sector, which performed well during the festive season and recovered from it.

India GDP Growth: Good news has started coming about India’s economy, agencies around the world have given good signs about the economy. According to the news of Business Standard, economists have estimated 7-9 percent growth in India’s GDP in the second quarter of the current financial year 2021-21. These figures are going to be released on Tuesday. CARE Ratings Chief Economist Madan Sabnavis said the main driver of economic growth is the manufacturing sector, which performed well during the festive season and recovered.

He said that after the easing of lockdown restrictions in most states since July, the Indian economy performed quite well in the second quarter of FY 2022. Yuvika Singhal, economist at QuantEco Research, said that after the decline in Kovid infection, there was some relaxation in the lockdown as well as the vaccination campaign also gained momentum. Due to this there was a boom in economic activities.

Strong support for growth in Q2

Singhal said that both industry and service sector output is expected to pick up. Singhal said the Daily Activity and Recovery Tracker (DART) index had crossed the baseline of 100 in July. After this, the third wave did not come in August and it reached a record high. Economists have estimated India’s GDP growth rate to be 7-9% in the second quarter. Ranan Banerjee, leader of economic advisory services at PwC India, said some contract services resumed operations in the second quarter of FY22, providing strong support for growth in the second quarter.

What do experts say?

Devendra Pant, Chief Economist, India Ratings and Research, attributed the improvement in economic activity to the base effect and pre-festival demand for economic growth in the second quarter. State Bank of India Group’s chief economic advisor Soumya Kanti Ghosh said the estimated growth of 8.1 per cent in the second quarter of FY 2022 will be the highest among all economies.

ICRA Chief Economist Aditi Nair said that economic activity in the second quarter of FY 2022 has been greatly supported by the stopping of the second wave of Kovid-19 and increasing vaccine coverage. Besides, central and state government spending, strong merchandise exports and sustained demand from the agriculture sector supported economic activity in the second quarter, Nair said.

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