GDP growth in Q2 slows to 8.4%

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India’s growth during the second quarter of 2021-22 slowed to 8.4%, owing to the waning low base effect, official data showed on Tuesday. The GDP growth in April to June quarter in the current fiscal was at 20.1%. The Indian economy had slumped by 24.4% in the corresponding year last year.

According to the data from the National Statistical Office (NSO), the GDP had decreased by 7.4% in the corresponding July to September quarter of 2020-21.

It is estimated that GDP at Constant (2011-12) prices in April to September 2021-22 was at Rs 68.11 lakh crore as against Rs 59.92 lakh crore in the corresponding quarter of previous year. The data stated a growth of 13.7% in the first half of 2021-22, as compared to a contraction of 15.9% during the same period last year.

The government imposed a nationwide lockdown at the onset of the Covid-19 pandemic last year. China has recorded a growth of 4.9% in the July to September period of 2021.

As per official data on Tuesday, the central government’s fiscal deficit was worked out to be 36.3% of the annual budget target for 2021-22 at the end of the October.

Fiscal deficit or the gap between expenditure and revenue was 119.7 per cent of the budget estimate of 2020-21 during the corresponding period last year.

During the corresponding period last year, fiscal deficit or the gap between expenditure and revenue was 119.7% of the budget estimate of 2020-21.

In actual terms, the deficit was Rs 5,47,026 crore at end-October, 2021 against the annual estimate of Rs 15.06 lakh crore, said the data released by the Controller General of Accounts (CGA).

The fiscal deficit for 2020-21 was 9.3 per cent of the Gross Domestic Product (GDP), better than 9.5 per cent projected in the revised estimates in the Budget in February.