India has reported that its economy grew at an 8.4% annual pace in the July-September quarter, in the latest sign of economic recovery in Asia’s third-largest economy.
NEW DELHI – India’s economy grew at an 8.4% annual pace in the July-September quarter, in the latest sign of economic recovery in Asia’s third-largest economy, the government reported on Tuesday.
India suffered the biggest setback of any major economy in the last financial year.
In the same quarter a year ago, the economy shrank 7.4%, badly hit by rising COVID-19 cases and a stringent nationwide lockdown, with months-long restrictions dealing a heavy blow to economic activity.
The situation has improved in recent months, following a disastrous increase in virus cases reported by the Delta variant earlier this year. Daily cases have fallen to nearly 10,000 after crossing 400,000 in May. The pace of vaccination has accelerated, instilling confidence in the reopening of businesses and industries. Roads and markets across the country are now bustling with hustle and bustle.
Experts said sectors such as agriculture and mining performed well and helped lead the growth seen in the July-September quarter.
The economy expanded at a pace of 20.1% in the April-June quarter, the fastest growth since India began publishing GDP figures in 1996. But economists cautioned that the growth was calculated on a smaller basis for 2020, when the economy shrank 24.4% in April-June, dragging the country into recession.
A country enters a technical recession if its economy contracts for two consecutive quarters.
In 2020-21, India’s growth slowed to 7.3%, worsened by the slowdown, which slashed growth to 4% from 8% in the two years before the pandemic hit.