'Not Yet A V-Shaped Recovery': Congress Reacts After India's Q2 FY-22 GDP Growth Expands Over 8%

According to the former finance minister P Chidambaram, the recovery is not yet V-shaped.

(File Photo/ Getty)

New Delhi: In response to the latest GDP figures released by Centre earlier in the day, Congress leaders slammed the Modi government on Tuesday, claiming that key areas of the economy remain 'crippled.'

Country's economy remained on track to post the fastest growth among major economies this year as its gross domestic product (GDP) figures expanded by 8.4 per cent in the July-September quarter to cross pre-pandemic levels.

Reacting to the same, former finance minister P Chidambaram, the recovery is not yet V-shaped. “Let us extend a cautious welcome. It is NOT yet a ‘V’ shaped recovery. The fine print will bear that out,” Senior Congress leader tweeted.

Let us extend a cautious welcome. It is NOT yet a ‘V’ shaped recovery. The fine print will bear that out

There are sectors of the economy that are still crippled and need help and time to recover

— P. Chidambaram (@PChidambaram_IN) November 30, 2021

GDP growth was 20.1 per cent in the April-June quarter of this fiscal year. In April-June of last year, the Indian economy dropped by 24.4 per cent.

While stating that there are still "crippled" sections of the economy that require assistance and time to recover, Chidambaram said, “In 2021-22, GDP growth in Q1 was 20.1 per cent on a previous year’s Q1 growth of -24.4 per cent. In Q2, the growth is reported as 8.4 per cent on a previous year’s Q2 growth of -7.4 per cent."

Meanwhile, Congress leader Randeep Surjewala also pointed fingers at the government, claiming that the latest figures show "continuing abysmal performance of the economy" and "abject failure of Modi-nomics."

In a series of tweets, Surjewala said, "Even in Q2 2019-20, the GDP growth rate was a meagre 4.5%. So, even if we compare it with a slowed-down economy (as in 2019-20), the performance is abysmal this quarter."

The latest 2nd quarter GDP figures reveal the continued abysmal performance of economy & abject failure of ‘Modi-nomics’.

The deeply flawed policies of Govt has ensured that economy hasn’t even inched back to pre-covid growth rate, which was itself very poor.
1/4#GDP

— Randeep Singh Surjewala (@rssurjewala) November 30, 2021

India's GDP Grows By 8.4% In July-September Quarter

As the effects of Covid-19 subside, India's GDP growth rate for the second quarter of the fiscal year 2021-22 (FY22) was 8.4 per cent, compared to a decline of 7.4 per cent in the same time the previous fiscal year, according to official statistics released on Tuesday.

According to statistics given by the Ministry of Statistics and Programme Implementation, GDP at constant (2011-12) prices is expected to be Rs 35.73 lakh crores in Q2 2021-22, up from Rs 32.97 lakh crores in Q2 2020-21, representing an 8.4% increase compared to a 7.4% contraction in Q2 2020-21.

India To Expand By Double-Digit In Current Fiscal Year

Meanwhile, India's Chief Economic Adviser (CEA) K V Subramanian stated that the country is likely to expand by double digits in the current fiscal year, backed by increased demand and a strong banking sector.

Subramanian also stated that the crucial second-generation reforms will enable the economy to develop by more than 7% this decade.

According to economists, the Indian economy is on the cusp of recovery helped by a resilient farm sector growth, however, risks included slowing global growth, rising manufacturing prices and new variants of Covid-19.