Indian economy clocks 13.5 % GDP growth in 1st quarter

Riding high on the back of a favorable base effect and improved activities following the relaxation of pandemic-led restrictions, Indian economy recorded a resounding recovery and clocked the fastest pace of double-digit growth rate of 13.5 percent in the first April-June quarter of the current fiscal. The pace of growth has factually outweighed the rippling effects of geopolitical and global concerns. Asia’s third-largest economy posted lagging the 15.2 percent estimate by Reuters and sharply higher than the 4.1 percent growth rate in the preceding quarter.

A rebound in private consumption - one of the key factors for the economy - and growth in contact-intensive sectors amid declining Covid-19 fears aided economic momentum in the first quarter. Moreover, a severe coronavirus Delta wave in the comparable year-earlier period had impeded growth as consumption demand shrinked with state-enforced movement restrictions. India’s economy grew 20.1 percent in the first quarter of last fiscal year, but the growth reading was magnified due to the economic contraction of 23.8 percent in Q1 FY21 owing to the colossal impact of the outbreak of the pandemic and the ensuing lockdowns that shuttered businesses and even rendered millions jobless.