7.2 per cent as a result of easing pandemic restrictions and rising mobility, following a rapid surge in infections in the second quarter of this year. According to recent data issued by the Ministry of Statistics and Programme Implementation, the manufacturing sector expanded by 10.5 per cent during this month, while mining and electricity also reported a growth of 19.5 and 11.1 per cent from a year earlier.
Nevertheless, in the beginning of the third quarter, the consumer non-durables sector contracted for the third consecutive month at 1.8 per cent, while manufacturing of pharmaceuticals, tobacco and furniture also remained in negative territory during the month.
Meanwhile, the government continues to express its confidence in the potential for a faster recovery and stronger economic growth on the back of stronger macro-economic fundamentals supported by structural reforms. “A broad-based rebound in several leading macroeconomic indicators in July and August offer bright prospects for India’s continued economic recovery. With government and RBI’s unflinching commitment to put the economy back on track, India is poised for an even faster recovery in the next three quarters of 2021-22,” the Department of Economic Affairs said in a report.
The agency further noted that the ongoing vaccination campaign in the South Asian nation, together with the country’s experience in pandemic management strengthens the confidence that the recovery can be continued “even in the event of a third wave”.
