The India’s economic growth accelerated to 13.5 per cent in the April-June quarter which is the fastest annual expansion in a year, official data released on Wednesday showed.
Gross domestic product (GDP) in the three months to June 30 was 13.5 per cent higher than a year earlier, compared to 4.1 per cent in the January to March quarter.
The growth was driven by manufacturing and services, such as accommodation and travel, which bounced back from the pandemic restrictions.
The last time GDP hit a higher annual growth was in April-June 2021 when it was 20.1 per cent higher but this was compared to a low base due to the devastating effect of the pandemic in the year before.
China’s economy, on the other hand, grew by a mere 0.4 per cent in the April-June quarter.
Services sector registered a growth of 17.6 per cent while industries expanded at 8.6 per cent. Agriculture sector grew at 4.5 per cent.
“Continued expansive vaccination coverage also supported the progress of the recovery. We remain optimistic about the economic outlook and the real estate sector,” Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE Group said.
Prime Minister Narendra Modi has laid a huge emphasis on reviving economic growth and kickstarted several infrastructure projects. While delivering the Independence Day speech this year, Modi also said that India must aim to become a developed nation in the next 25 years. “I urge the country’s youth to dedicate the next 25 years of their lives for the nation’s development. We will work towards the development of the entire humanity,” he said.
The Economic Advisory Council to the Prime Minister (EAC-PM) on Tuesday said that the country can become a $20 trillion economy even at a growth rate of 7 to 7.5 per cent on a sustained basis for the next 25 years.
Christian Ketels, professor at Harvard Business School said that India is one of the most important countries in the world and its success is crucial for the world. “India’s performance has global ramifications. How India addresses its competitiveness challenges and harnesses opportunities will affect how different countries address challenges they face,” Ketels said, adding that no policy decided today will last for 25 years. “But if we manage to affect the thinking about India’s competitiveness and what it takes for this country to grow, then actually I think we have the opportunity to have an impact for many years into the future,” he said.