Niti Aayog Vice Chairman Rajiv Kumar on Friday termed the speed of India's economic recovery as a "pleasant surprise" and said manufacturing shows a positive growth that confirms a rebound. India's economy recovered faster than expected in the September quarter as a pick-up in manufacturing helped GDP clock a lower contraction of 7.5 per cent and held out hopes for further improvement on better consumer demand.
"Speed of #economic recovery springs a pleasant surprise. #Manufacturing shows a positive growth which is the confirmation of a rebound of demand led recovery," Kumar said in a tweet. The gross domestic product (GDP) had contracted by a record 23.9 per cent in the first quarter of the 2020-21 fiscal (April 2020 to March 2021) as the coronavirus lockdown pummelled economic activity.
With the gradual opening up from June, the economy has picked up, according to official data released on Friday. Manufacturing clocked a surprise 0.6 per cent growth in July-September after it had shrunk by a massive 39 per cent in the preceding quarter. Continuing its good showing, the agriculture sector grew by 3.4 per cent, while the trade and services sector showed lower-than-expected contraction at 15.6 per cent.
Public spending was down 12 per cent. The GDP contraction of 7.5 per cent in July-September compares with a growth of 4.4 per cent in the same quarter last year.
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today