GDP growth rebounds to 20.1 pc in April-June quarter on a low base

The GDP had contracted by 24.4 percent during the April-June quarter of 2020-21 fiscal, according to data released by the National Statistical Office (NSO).
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India’s economic growth surged to 20.1 percent in the April-June quarter of this fiscal, helped by a low base of the year-ago period, despite a devastating second wave of COVID-19.

The gross domestic product (GDP) had contracted by 24.4 percent in the corresponding April-June quarter of 2020-21, according to data released by the National Statistical Office (NSO) on Tuesday.

The government had imposed a nationwide lockdown at the onset of the COVID-19 pandemic last year. This year, the massive second wave of the pandemic hit the country in the middle of April, which forced states to impose fresh restrictions.

However, the economy has still not returned to the pre-COVID level.

In value terms, the GDP stood at Rs 32,38,020 crore in April-June 2021-22, lower than Rs 35,66,708 crore in the corresponding period of the 2019-20 financial year.

The GDP had shrunk to Rs 26,95,421 crore in April-June last year during the nationwide lockdown.

“GDP at Constant (2011-12) Prices in Q1 of 2021-22 is estimated at Rs 32.38 lakh crore as against Rs 26.95 lakh crore in Q1 of 2020-21, showing a growth of 20.1 percent as compared to a contraction of 24.4 percent in Q1 2020-21,” the NSO said in a statement.

To contain the second wave of the pandemic, localised and calibrated lockdowns were imposed during the first quarter of 2021-22, it added. Restrictions were imposed on the economic activities not deemed essential as also on the movement of people.

"The lockdown instructions in various states were duly considered by the NSO. The impact on economic activities and the data collection mechanisms owing to the COVID-19 pandemic affects the Quarterly GDP estimates also.

"The impact of these measures on overall economic activity is embedded in source data," it stated.

According to the NSO data, gross value added (GVA) growth in the manufacturing sector accelerated to 49.6 percent in the first quarter of 2021-22, compared to a contraction of 36 percent a year ago.

Farm sector GVA growth was up at 4.5 percent compared to 3.5 percent earlier.

Construction sector GVA grew by 68.3 percent compared to 49.5 percent contraction earlier. The mining sector grew by 18.6 percent as against a contraction of 17.2 percent a year ago.

Electricity, gas, water supply, and other utility services segment grew by 14.3 percent in the first quarter of this fiscal, against a 9.9 percent contraction a year ago.

Similarly, trade, hotel, transport, communication, and services related to broadcasting grew by 34.3 percent compared to 48.1 percent contraction earlier.

Financial, real estate, and professional services grew by 3.7 percent in Q1 FY22 compared to a contraction of 5 percent.

Public administration, defence, and other services grew at 5.8 percent during the quarter under review, compared to (-) 10.2 percent a year earlier.

Meanwhile, China has posted a growth of 7.9 percent in the April-June period of 2021.

Edited by Suman Singh

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