GDP grows 8.4% in Q2; demand, services drag down economic activities

GDP remained almost flat, barely managing to expand 0.3% over the pre-Covid period of Q2 FY20

The economy grew 8.4 per cent during the second quarter of 2021-22 as the pace of vaccination rose and Covid-induced restrictions were eased. However, growth was largely on account of the low base of a 7.4 per cent contraction during the corresponding period of the previous year.

Thus, gross domestic product (GDP) remained almost flat, barely managing to expand 0.3 per cent over the pre-Covid period of Q2 FY20. This implies that though the economy is in recovery mode, the pace is yet to accelerate.

The economy, while growing 20.1 per cent year-on-year in Q1, had contracted 9.2 per cent against the