The Indian economy grew 0.4% year-on-year in the December quarter after signing contracts for two straight quarters, the finance ministry said on Friday, adding that India’s economic growth in the December quarter was “a stronger reflection of the V-shaped recovery that began in the second half of 2020-21”. This recovery is behind the final management of the lockdown and a gradual revenue stimulus, the ministry added.
“The sharp V-shaped recovery has been driven by rebounds from both Private Final Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) as a combination of the final management of the lockdown, and the strong financial stimulus to boost the economy has strengthened the economic momentum.” Read in the statement
The initial policy of “living successfully” through “living and making a living” was now bringing about the positive results of being transformed with foresight when entering the war with the epidemic on health and economy. Front, “it added.
While the GFCF improved from a 46.4% contraction in Q1 to a positive growth of 2.6% in Q3, the PFCE returned to a smaller contraction in Q1 from a 26.2% contraction in Q3 to a smaller contraction than 2.4%.
The Ministry of Finance has said that the demand for investment has been revived as a result of the capital expenditure of the Center. “In addition to the overall recovery of the economy, the resumption of GFCFin Q3 in the central government was also indicated by Capex increased by 129% in October, 249 in November and 62% in December, 2020. The statement said,” Is at least 3-4 times larger than that because capex costs a lot more than a normal income transfer ”.
Significant recovery in manufacturing and construction Financial institutions in this sector are expected to provide growth in FY 2021-22.
In the July-September quarter, India’s GDP contracted 7.5% year-on-year. The economy shrank by 23.9% year-on-year in the April-June quarter on the back of coronavirus outbreaks and nationwide lockdowns to prevent the virus. NSO GDP growth in the June and September quarters was -24.9% and -3.3%, compared to estimates of -22.9% and -7..5%, respectively.