Menu
BW CFO World
Community for Finance Professionals, Consultants and allied businesses
  • Home
  • News
  • Videos
  • Articles
    • Credit & Capital
    • Economic Trends
    • Financial Compliance
    • Financial Leadership
    • Financial Management
    • Financial Reporting
    • Financial Strategy
    • Risk Management
    • Taxation
  • Featured
  • Nominate for Awards
Close Menu
economy
September 1, 2021

GDP Rises 20 Per Cent In Q1 Of FY22

admin Economic Trends

By BW CFO World Online Bureau

In the first quarter of FY22, GDP grew 20 per cent but still it is below than the increase in FY20 levels that was the pre-pandemic economy

India’s GDP grew 20.1 per cent in the June quarter, giving the illusion of an economic recovery, while it was largely driven by a deeply contracted base (-24.4 per cent). Real GDP still trailed in the pre-pandemic period by 9.2 per cent as the upcoming of covid infections impacted the economy’s gradual return to normality.

Manufacturing, construction, electricity and mining were growing fast in June quarter to cancel out the steep decline in the previous years, while key sectors could not even reverse the damage completely. Private consumption, the biggest constituent of the economy remained 12 per cent below the pre-pandemic level.

Fixed Investments rose by 55.3 per cent in Q1FY22 to raise its share in GDP by over 7 per cent. The absolute size of the fixed investments was still below the pre-pandemic level.

Data gathered by media source indicates that in 15 countries the Capex was up by 135 per cent for the quarter. The centre’s budgetary capital expenditure was up by 26.3 per cent.

Government consumption, the usual savior in times of crisis, was sluggish during the quarter- it declined by 4.8 per cent on a strong base (12.7 per cent).

With the ebbing of the second covid wave, manufacturing activities have retained their place in the quarter but the dominant services sector is still in the contraction zone. While the resilience of the agriculture sector is expected to help rural demand, urban consumption requires sustained growth in manufacturing and atleast non-contact intensive services.

Aditi Nayar, chief economist at ICRA, reportedly said that while the base effect has concealed the impact of the second Covid wave, “the sharp year-on-year expansion in Q1FY22 is analytically misleading, with a sequential slowdown of 16.9 per cent over Q4FY21 and a shortfall of 9.2 per cent relative to the pre-Covid level of Q1FY20”

Upasna Bhardwaj, senior economist at Kotak Mahindra Bank, told media sources, “Economic activity has been reviving since July and has picked up momentum. As vaccination pace picks up we expect the momentum to pickup further, although we remain wary on the evolution of delta variant cases”.

→

Fiscal Deficit Slows To 21 per cent In April-July FY22 Vedanta: Contributed Rs 2.74 Trillion To The Exchequer In Last 10 Years

Related Posts

Chandrasekar-K-1

Credit & Capital, Economic Trends

Leading with empathy is the correct mantra for success

20220331_113353

Credit & Capital, Economic Trends

Govt orders probe into fire incident involving Ola

indian rupee

Credit & Capital, Economic Trends

Asian stocks rise as Ukraine peace talks appear to progress

Movements

  • adobe danDan Durn Appointed As Adobe’s New Chief Financial Officer
  • Vineet Mahajan_Vineet Mahajan Appointed As New CFO Of Avanse Financial Services On Sept 27
  • bharat pet director financeVetsa Ramakrishna Gupta To Lead Bharat Petroleum As Director Finance
  • tender cuts cfoTenderCuts Names Satya Rakesh as New CFO
  • dailmer CFOManish Thakore Helms Daimler India Commercial Vehicles as CFO

Selected Stories

  • Chandrasekar-K-1Leading with empathy is the correct mantra for success

    Read more

  • 20220331_113353Govt orders probe into fire incident involving Ola

    Read more

  • indian rupeeAsian stocks rise as Ukraine peace talks appear to progress

    Read more

  • economyTata Coffee rallies nearly 13 pc; Tata Consumer jumps over 5 pc

    Read more

  • rupeeRupee rises 4 paise to 75.69 against US dollar in early trade

    Read more

Categories

  • Accounting
  • CFO Stance
  • Credit & Capital
  • Economic Trends
  • Featured
  • Financial Compliance
  • Financial Leadership
  • Financial Management
  • Financial Reporting
  • Financial Strategy
  • Financial Technologies
  • Global News
  • Interview
  • Movements
  • Risk Management
  • Taxation

Recent Comments

    Back To Top
    BW CFO World
    • Home
    • News
    • Videos
    • Articles
      • Credit & Capital
      • Economic Trends
      • Financial Compliance
      • Financial Leadership
      • Financial Management
      • Financial Reporting
      • Financial Strategy
      • Risk Management
      • Taxation
    • Featured
    • Nominate for Awards
    © Copyright BW BUSINESSWORLD 2018. All Rights Reserved.