GDP growth is projected at 7-8 per cent
New Delhi: India’s GDP growth is projected at 7-8 per cent for the July-September quarter. In the first quarter of the current financial year 2021-22, the GDP growth rate has increased by 20.1 per cent over the previous quarter.
Motilal Oswal Financial Services Ltd.’s Ecoscope report states that in July 2021, the Economic Activity Index – Gross Value Added, ie financial transactions and their turnover increased slightly. The economy has grown faster than financial spending has declined.
However, it has been noted that there has been an increase in purchases and investments from consumers. Therefore, if the economy continues to grow in the second quarter from July to September, the GDP growth rate is projected to increase by 7 to 8 per cent, the report said.
Total consumer purchases grew by 5.1 per cent in July 2021 (compared to 2.7 per cent in June 2021 and minus 12.1 per cent in July 2020). After a 31 per cent decline in government procurement in July 2021, private procurement grew by 6.9 per cent in the last three months on an annual basis.
Excluding government purchases, EAI-GVA grew by 7.1 per cent in July 2021 to 3.2 per cent in June 2021. But compared to March-May 2021, its pace is still slow. In addition, imports are growing faster than exports, which will have a negative impact on foreign trade in EAI-GDP in July 2021. On an annualized basis in July 2021, investment in July 2021 was 12.1 per cent, the lowest in five months. This is because it had declined by 18.5 per cent in June 2021 and 21 per cent in July 2020.