GDP growth rate at 5.4 per cent in India for Q3 FY 2021-22 is inspiring, as there was severe impact of the 3rd wave on the economic activity during Q3 2021-22, according to Pradeep Multani, President, PHD Chamber of Commerce and Industry.
On the back of supportive policies of the Government, calibrated measures by RBI, rapid vaccination drive in the country and improved consumer and business sentiments, the economy has recovered from the severe contraction of FY 2020-21 and India looks forward to a strong growth in the coming quarters, Multani said.
The Q3 FY 2021-22 GDP growth rate stands at 5.4%, of which growth rate of Agriculture, forestry & fishing stands at 2.6%, Mining & quarrying at 8.8%, Manufacturing at 0.2%, Electricity, gas, water supply and other utility services at 3.7%, Construction at (-)2.8%, Trade, hotels, transport, communication & services related to broadcasting at 6.1%, Financial, real estate & professional services at 4.6% and Public administration, defence & other services at 16.8%.
Gross fixed capital formation (GFCF), which reflects the capital expenditure in the country has accelerated by 2% to Rs 11.5 lakh crore in Q3 FY 2021-22 as compared to Rs 11.3 lakh crore in Q3 FY 2020-21, Multani added in a statement.
Private final consumption expenditure (PFCE) has also increased by 7% to Rs 23.2 lakh crore in Q3 FY 2021-22 from Rs 21.7 lakh crore in Q3 FY 2020-21, while Government final consumption expenditure (GFCE) has increased by 3.4% to Rs 3.6 lakh crore in Q3 FY 2021-22 from Rs 3.4 lakh crore in Q3 FY 2020-21, the PHDCCI President said.
At this juncture, the pace of economic activity is expected to remain strong on the back of various structural reforms undertaken by the Government during the last 2 years, he said.
The recent budget announced by the Government for the FY 2022-23 looks into the future while keeping a close eye on the ground. The Budget is a step forward towards the vision of creating an “Aatmanirbhar” Bharat and reflects a consistency in government’s approach in making India a Modern, Developed and Inclusive nation, Multani further said.
Going ahead, the drivers of household consumption need to be further strengthened to enhance the aggregate demand as it will have an accelerated effect on expansion of capital investments, the PHDCCI chief opined.
