India’s economy showed growth in Q1 before COVID | | Business and Economic Affairs

Total exports to India grew by 1.6 per cent in the first quarter of 2021 compared to the same period last year, but the growth slowed due to the high incidence of coronavirus.

India’s annual economic growth rose in January-March compared to the previous three months, but economists are optimistic about the quarter after the second COVID-19 epidemic hit the country last month.

Low-cost vaccinations and restrictions on sudden illness and death across the country have affected the economy, such as sales, transportation and construction, while costing millions millions of jobs.

India has recorded 28 million COVID-19 cases, second only to the United States, with 329,100 deaths since Monday, although the rise has begun to decline.

Gross domestic product (GDP) grew by 1.6% in January-March compared to the same period last year, largely due to government spending and growth in the manufacturing sector, most of which the Ministry of Statistics revealed on Monday.

Economists say the country is facing a decline in consumer demand as domestic and labor costs are low, it is too low for the government to provide incentives for growth due to rising debt.

Sakshi Gupta, an economist at HDFC Bank, said that although the annual increase for the April-June quarter may appear to be declining due to the decline, successive growth could occur.

“Because the virus is so prevalent in rural areas on the tide, rural needs and areas that depend on rural resources may be concerned.”

Economists have reduced their forecast for the fiscal year that began on April 1 to 8-10% from the initial 11-12%.

Consumer spending – the chief financial officer – rose 2.7% year-on-year for the January-March quarter following a 2.8% hit over the quarter, the data showed.

The annual growth rate of 6.9% in production and 14.5% in construction in the three months to March shows signs of recovery before the second wave arrives in the country.

Revenue rose by 10.9% compared to 2.6% growth in the previous quarter, while government revenue rose 28.3% after no growth at all during the October-December period, data showed.

India has also changed its annual estimate of GDP for the fiscal year, predicting about 7.3% contraction, much lower than previously predicted a decline of 8%.

Late vaccination

Prime Minister Narendra Modi has been criticized for shortening his four-month vaccination campaign, which has cost less than 4% of India’s 1.38 billion people.

The central bank, which has invested in the economy and boosted the economy, said last week the country’s growth prospects would depend on how quickly India could eradicate the disease.

Researchers warn that slower emissions could lead to problems in mid-growth, especially if the country were to experience a third wave of COVID-19.

Unemployment rose nearly a year ago by 14.7% last week May 23, according to the Center for Monitoring Indian Economy, a Mumbai-based business company.

Krishnamurthy Subramanian, chief financial adviser at the Ministry of Finance, said growth power was lost after the coronavirus cases escalated.

“India continues to seek financial and financial assistance,” he said.