gdp

India Q2 GDP Economy Grows At 8.4% – Free PDF Download

 

What has happened?

  • Indian economy has gained momentum during the July-September period, inching gradually back to normalcy as coronavirus related disruptions eased significantly in the aftermath of a devastating second wave.
  • Gross domestic product (GDP) for the second quarter of the financial year grew by 8.4% from a year ago, one of the fastest rates among major economies, data released by the government showed on Tuesday.

significance

  • A pickup in demand, improved vaccination rate for Covid-19 and a low base effect are likely to have aided an uptick in the growth rate for the second quarter this year.
  • However, the latest threat from the Omicron variant looms large, which has already triggered the return of travel restrictions.
  • While the Indian economy is yet to see any impact, the news is weighing on the sentiments in the currency and stock markets.

Inflation worries?

  • The supply chain bottlenecks that have pushed up inflation globally are likely to ease with time.
  • Policymakers are likely to be tolerant of slightly higher than target inflation in the interim, and not view it a big threat, but slightly faster normalization cannot be ruled out.

Q) Transfer payments refer to payments that are made?

  1. As compensation to employees
  2. Without any exchange of goods and services
  3. To workers on transfer from one job to another
  4. None of the above

 

 

 

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