India’s economy seen to expand at a record high in Q2
India’s economy is expected to mark a record-high expansion in the second quarter, owing to a weak base last year and a recovery in consumer expenditure.
A Reuters poll of 41 economists conducted from August 20 to 25 showed an increase of 20.0% in gross domestic product (GDP) from April to June period. This is a potential improvement from last year’s contraction of 24.4% in the same period.
The expected growth would also be India’s strongest since mid-1990s, when the country started releasing economic quarterly data. The projection was sharply higher than the last quarter’s 1.6%, although marginally lower than the Reserve Bank of India’s estimate of a 21.4% rise.
The economy bounced back despite a blow from the coronavirus lockdowns that restricted mobility from late April to early June.
However, the spread of new virus strains is seen to disrupt the economy’s momentum, with ICRA chief economist Aditi Nayar saying the recovery remains uneven.