'Let us extend a cautious welcome. It is NOT yet a 'V' shaped recovery. The fine print will bear that out,' the former finance minister tweeted.
The eight broad metrics of growth are decidedly back to black in Q2. Among them, mining and quarrying and public administration clocked double-digit growth over last year.
Economic activity in Q2 FY22 was supported by a pick-up in industrial and service sector volumes after the second wave of Covid-19 subsided and rising vaccine coverage revived confidence.
The fiscal and taxation reforms have played key role in driving growth and reviving confidence, Das said.
The GDP growth rate has been clocking an underwhelming below 7% ever since (barring a couple of quarters in Financial Year 2018).
The eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity had contracted by 6.9 per cent in August 2020.
The RBI expects the economy to grow at 9.5 per cent. Icra on Monday said it expects the second half of the fiscal year to have brighter prospects.
Varma, who is also a member of the Monetary Policy Committee (MPC) of the Reserve Bank, said high and persistent inflation is a major constraint on monetary policy.
We have still some distance to go before the economy can be said to have achieved the pre-pandemic level, Congress leader P Chidambaram tweeted.
Icra said the low base of the last year, when the GDP had contracted by close to 24 per cent, "conceals" the impact of the second wave of COVID-19 infections.
For the next fiscal, however, the IMF has forecast an 8.5% growth for India, 160 basis points higher than its April forecast.
The multinational financier cited the country’s struggle with the second wave of the Covid-19 pandemic, which it says has hampered India’s economic recovery.
Initially, the view was that India would grow at up to 15% in 2021-22 and 10% in the next financial year. However, all those hopes are now dashed.
The central bank has projected real GDP growth at 9.5% which is down from 10.5% estimated earlier
The economists at the state-run lender seemed to attribute the impact of the second wave of COVID-19 infections as a key factor for the revision in the growth estimate.