Manufacturing GVA rises in Q2; still a long way to go for turnaround

Gross value added (GVA) in manufacturing grew by a marginal 0.6 per cent in the second quarter of financial year 2020-21 (Q2FY21), after declining for four consecutive quarters. However, experts said this did not indicate that there was a turnaround in manufacturing, as it continued to contract in volume terms.
 

In volume terms, manufacturing contracted 6.66 per cent in Q2, way lesser than the steep fall of 40.49 per cent during the lockdown-affected Q1. “There was a minor bump in the manufacturing GVA because of the base effect,” said Devendra Pant, chief economist at India Ratings.
 

He said one reason