Economic growth may not hold if private spend dips, say economists

Economists say revival will hinge on govt spending, policy support

Robust economic growth in the first quarter may be difficult to sustain going forward with private investment likely to taper off and demand recovery expected to take longer, economists have cautioned. With the low base effect set to wear off in the coming quarters, economic revival will depend largely on government spending and monetary policy support as Covid-19 related risks persist.

India’s GDP grew by 20.1 per cent in the April-June quarter of 2021-22 year-on-year, but was 9.2 per cent lower than the level attained in the first quarter of 2019-20.

While gross fixed capital formation, indicating private investment, grew by 55.3