+
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
Infrastructure Energy

Mahindra Susten Appoints Avinash Rao as New MD & CEO

Mahindra Susten, the cleantech arm of the Mahindra Group and a leading independent power producer in India, has appointed Avinash Rao as its new Managing Director and Chief Executive Officer, effective 24 September 2025. Rao will lead the company’s growth strategy, focusing on portfolio expansion and diversification across the renewable energy value chain.Mahindra Susten has over 1.6 GW of commissioned projects and a pipeline of nearly 3.6 GW across solar, wind, hybrid projects, and commercial and industrial solutions. The company is also building capabilities in emerging areas such as energ..

Next Story
Infrastructure Urban

Manoj Ceramic Opens Flagship Display Centre in Dubai

Manoj Ceramic Limited (MCPL), a leading name in India’s ceramics and tile industry, has inaugurated its flagship Display Centre in Dubai, marking a significant step in its international expansion strategy. The launch strengthens MCPL’s global footprint and reinforces its focus on customer-centric growth across key international markets.The new centre brings MCPL’s design-first ceramic innovations to Dubai, one of the world’s fastest-growing hubs for architecture, construction, and luxury interiors. The showroom features the company’s complete portfolio, including ceramic and porcelai..

Next Story
Infrastructure Energy

IREDA Signs MoU with MNRE, Sets Rs 82 Billion Revenue Target

The Indian Renewable Energy Development Agency Limited (IREDA) has signed a performance-based Memorandum of Understanding (MoU) with the Ministry of New and Renewable Energy (MNRE), Government of India, setting strategic targets for the fiscal year 2025-26.The MoU was signed at Atal Akshay Urja Bhawan in New Delhi by Santosh Kumar Sarangi, Secretary, MNRE, and Pradip Kumar Das, Chairman and Managing Director of IREDA, in the presence of senior officials from both organisations.Under the agreement, the Government of India has set a revenue from operations target of Rs 82 billion for FY2025-26. ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?