According to the Indian Ministry of Statistics, strong growth was driven by increases in the manufacturing, construction and consumption sectors.
Consumer spending, the main driver of the economy, increased 19.34% year-on-year, but remains below pre-pandemic levels.
India saw a second wave of the outbreak in April and May but activity was less affected than last year because containment measures were less stringent.
Mumbai streets are empty during lockdown on April 23.
In the last financial year, the Indian economy’s GDP decreased by 7.3% due to being severely affected by the Covid-19 crisis.
He affirmed that this economy can cope with the effects of any move from the US Federal Reserve (Fed) to tighten liquidity.
While advanced economies have rolled out massive stimulus packages to support consumption, Prime Minister Narendra Modi has chosen to increase spending on infrastructure, pursue privatization of state-owned companies and reform
The RBI, which has kept monetary policy loose, has forecast 9.5% growth in India’s current fiscal year.
`Progress on vaccinations will be critical, given the possibility of a third wave and the experience of other countries,` said Sreejith Balasubramanian, fund management economist at IDFC AMC in Mumbai.
Shashank Mendiratta, an Economist at IBM in New Delhi, noted that many futures indicators remain below pre-pandemic levels.
