India’s economy registers 13.5 per cent quarterly growth

India’s economy grew by 13.5 per cent in the April to June quarter from a year earlier, pushed up by a boost in agriculture and manufacturing as pandemic curbs eased, official figures released on Wednesday show.

The jump follows a 4.1 per cent slump in the January to March quarter, but is lower than the 20.1 per cent annual growth registered in the same quarter the previous year.

However, economists have cautioned that the growth for the April to June quarter may be followed by a slowdown. In July, the International Monetary Fund revised its growth forecast for India from 8.2 per cent to 7.4 per cent for the current fiscal year, which began in April.

Despite the revision, India would still be among the fastest-growing major economies in the world.

The double-digit growth in the April to June quarter comes at a time when the global economy is under strain, with major countries such as the United States and the United Kingdom facing high inflation. Prices have been rising as Russia’s invasion of Ukraine continues, triggering increased prices for energy and food.

India’s economy, Asia’s third largest, had been recovering from a pandemic-induced slump when a surge in Omicron-fuelled coronavirus cases, starting in January, prompted authorities to bring back some virus-related restrictions.

Multiple waves of COVID-19 outbreaks have badly hit India’s large informal sector, with unemployment rising to nearly 8.5 per cent in August, according to data from the think tank Centre for Monitoring Indian Economy.

India’s central bank projected inflation at 6.7 per cent this fiscal year and raised its key interest rate by 50 basis points to 5.4 per cent, in its third such hike since May.

The economy expanded by 8.7 per cent in the previous fiscal year, after contracting by 6.6 per cent in fiscal year 2020 to 2021.

AP