New Delhi: India's gross domestic product (GDP) for Q2 FY22 has been revised upward by 20 basis points to 7.9 percent, according to rating agency ICRA. In a report, the agency predicted that gross value added (GVA) for the quarter would increase by 20 basis points to 7.4 percent. This upward revision, according to ICRA, is due to the Centre's increased economic spending.
"Economic activity in Q2 FY22 was underpinned by a pick-up in industrial and service sector volumes after the second wave of Covid-19 faded and increased vaccine coverage renewed confidence," says Aditi Nayar, Chief Economist at ICRA.
"In addition, healthy federal and state government spending, strong merchandise exports, and continued farm sector demand boosted economic activity in the quarter." The report also noted that a strong trend in the production of major Kharif crops seems to have aided the expansion.
According to the report, revenue expenditure in 22 states, including Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Himachal Pradesh, Haryana, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Mizoram, Nagaland, Odisha, Punjab, Rajasthan, Sikkim, Tamil Nadu, Telangana, Tripura, Uttarakhand, and Uttar Pradesh, increased by 13.1 percent in Q2FY22, compared