Informist, Tuesday, Oct 19, 2021

NEW DELHI – India's GDP may have grown by 9.6% in Jul-Sep, according to the latest update of the Economic Activity Index constructed by Reserve Bank of India staff.

The index, discussed in the monthly 'State of the Economy' paper, is constructed using more than 20 monthly indicators measuring activity in various sectors.

The 'State of the Economy' paper, released late Monday, counts Deputy Governor Michael Patra as one of its authors. It does not necessarily represent the views of the central bank.

The GDP growth estimate of 9.6% for Jul-Sep is significantly higher than the RBI's official forecast of 7.9%.

Official GDP data for Jul-Sep is scheduled to be released by the National Statistical Office late next month.

The Indian economy grew by a record 20.1% in Apr-Jun on the back of a favourable base effect. With the GDP having contracted 7.4% in Jul-Sep 2020 as against a massive 24.4% contraction in Apr-Jun 2020, the base effect may have worn off to some extent. However, activity is expected to have gained sequential momentum following the end of the deadly second wave of the coronavirus pandemic.

"The time is right for setting India on a new trajectory of sustainable and inclusive growth. After all, October marks the ending and beginning of things, a symphony of permanence and change," the 'State of the Economy' paper said.  End

Reported by Siddharth Upasani

Edited by Mainak Moitra

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