GDP grows by 8.4% in Q2 FY22

India’s real gross domestic product (GDP) grew by 8.4 per cent in the quarter ended September 2021 compared to the same quarter a year ago. Thus, GDP recovered completely from the 7.4 per cent contraction it had suffered in the September quarter last year. During July-September 2021, private final consumption expenditure (PFCE) grew year-on-year by 8.6 per cent, while government final consumption expenditure (GFCE) grew by a shade better at 8.7 per cent. Gross fixed capital formation (GFCF), an indicator of investment demand in the country, grew year-on-year by 11 per cent during the September 2021 quarter. Imports grew by 40.6 per cent, at a much faster clip than exports which grew by 19.6 per cent. Consequently, the country witnessed a trade deficit amounting 3.8 per cent of GDP in the September 2021 quarter as against a trade surplus of 0.2 per cent of GDP in the September 2020 quarter.