Q2: Utility segments remain bright spots
ECONOMY & POLICY

Q2: Utility segments remain bright spots

Some essential infrastructure activities were the best performers in yet another gloomy quarter. While the overall GDP growth rate stayed negative, at -7.5%, electricity, gas, water supply and other utility services grew at 4.4%, topping the charts in the quarter. Agriculture, forestry and fishing grew at 3% while in a relief, manufacturing was on the positive side, too, at 0.6%.

However, construction remains a big concern as the GVA for construction slumped more than 8%. Defence and other services were down 12%. Real estate and professional services contracted by 8.1%.

As India plummeted into its first recession in decades, the first quarter’s (Q1 2021) slump to a worst-ever -23.9% in a coronavirus-hit, lockdown-hampered economy was followed by something that many consider better news.

Consumption, however, shrank by 11.5%, and is an indicator that actual recovery of demand in the private sector is a distance away. The path to recovery, however, seems to be in place unless the coronavirus situation worsens over the next months. The third quarter (Q3 2021) includes much of the festive season and may be something the industries will look forward to, although Q2 also encloses a small part of festive spending.

RBI governor Shaktikanta Das warned the industry of overoptimism, especially about expectations that the economy will grow faster than earlier anticipated, since the Covid- 19 pandemic is feared to resurge in the country.

It may be recalled that eight core sectors have shown contraction in October, including crude oil, natural gas, refinery products, steel, fertiliser. However, coal (11.6%) and electricity (10.5%0 grew significantly in October.

Some essential infrastructure activities were the best performers in yet another gloomy quarter. While the overall GDP growth rate stayed negative, at -7.5%, electricity, gas, water supply and other utility services grew at 4.4%, topping the charts in the quarter. Agriculture, forestry and fishing grew at 3% while in a relief, manufacturing was on the positive side, too, at 0.6%. However, construction remains a big concern as the GVA for construction slumped more than 8%. Defence and other services were down 12%. Real estate and professional services contracted by 8.1%. As India plummeted into its first recession in decades, the first quarter’s (Q1 2021) slump to a worst-ever -23.9% in a coronavirus-hit, lockdown-hampered economy was followed by something that many consider better news. Consumption, however, shrank by 11.5%, and is an indicator that actual recovery of demand in the private sector is a distance away. The path to recovery, however, seems to be in place unless the coronavirus situation worsens over the next months. The third quarter (Q3 2021) includes much of the festive season and may be something the industries will look forward to, although Q2 also encloses a small part of festive spending. RBI governor Shaktikanta Das warned the industry of overoptimism, especially about expectations that the economy will grow faster than earlier anticipated, since the Covid- 19 pandemic is feared to resurge in the country. It may be recalled that eight core sectors have shown contraction in October, including crude oil, natural gas, refinery products, steel, fertiliser. However, coal (11.6%) and electricity (10.5%0 grew significantly in October.

Next Story
Technology

Building Faster, Smarter, and Greener!

Backed by ULCCS’s century-old legacy, U-Sphere combines technology, modular design and sustainable practices to deliver faster and more efficient projects. In an interaction with CW, Rohit Prabhakar, Director - Business Development, shares how the company’s integrated model of ‘Speed-Build’, ‘Smart-Build’ and ‘Sustain-Build’ is redefining construction efficiency, quality and environmental responsibility in India.U-Sphere positions itself at the intersection of speed, sustainability and smart design. How does this translate into measurable efficiency on the ground?At U..

Next Story
Infrastructure Transport

Smart Roads, Smarter India

India’s infrastructure boom is not only about laying more kilometres of highways – it’s about building them smarter, safer and more sustainably. From drones mapping fragile Himalayan slopes to 3D machine-controlled graders reducing human error, technology is steadily reshaping the way projects are planned and executed. Yet, the journey towards digitisation remains complex, demanding not just capital but also coordination, training and vision.Until recently, engineers largely depended on Survey of India toposheets and traditional survey methods like total stations or DGPS to prepare detai..

Next Story
Infrastructure Urban

Delay Analysis in Construction Arbitration

In construction disputes, ‘delay analysis’ is essential for establishing the cause of delay, which in turn determines whether the contractor is entitled to an extension of time and associated costs or whether the employer is justified in imposing liquidated damages. This article enunciates various methods employed in the analysis of construction delays. It provides a detailed overview of the techniques used to identify, quantify and apportion delays among project stakeholders that are critical for the resolution of disputes pertaining to extension of time (EOT) and substantiation of EOT cl..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?