The Indian economy grew 20.1pc in the June quarter (Q1), compared to the prior year quarter that witnessed a record contraction of 24.4pc from FY20, according to official data released by the government. Production of steel was up 103.1pc in Q1 compared to a drop of 50pc recorded in the same quarter last year.
Recovery in Q1 FY2022 was possible on the back of improvement in manufacturing segment as compared to the slump in economic activities last fiscal. Despite the second covid wave in the months of April-May, manufacturing momentum was maintained which lifted economic recovery.
The economic impact of the first covid wave in India was more critical than the second wave which pressured economic productivity in the country. The GDP growth rate for April-June FY22 quarter was recorded as the best-ever-fiscal quarter. The fastest growth since the mid-1990s.
The Index of Industrial Production (IIP) for the mining sector rose by 27.3pc in Q1 from a year ago. The manufacturing sector jumped 53pc while the IIP for metallic minerals rose 94.2pc in Q1.