India’s GDP grows 20.1%, highest ever

NEW DELHI: India’s economy grew at a record 20.1% year-onyear in April-June quarter, official data on Tuesday showed, rebounding from a deep slump last year, helped by improved manufacturing in spite of a devastating second wave of Covid-19 cases.

It was the biggest growth on record since India started publishing quarterly statistics in 1996, and was broadly expected by analysts.

The gross domestic product (GDP) had contracted 24.4% in the same quarter a year earlier, according to data released by the National Statistical Office (NSO).

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-19 level.

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

The GDP had shrunk to ₹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 ₹32.38 lakh crore, as against ₹26.95 lakh crore in Q1

of 2020-21, showing a growth of 20.1% as compared to contraction of 24.4% in Q1 2020-21,” the NSO said in a statement.

With a view to containing 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 National Statistical Office. The impact on economic activities and the data collection mechanisms owing to Covid-19 pandemic has an effect on the Quarterly GDP estimates also.

“The impact of these measures on overall economic activity are embedded in source data,” it stated.

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

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

Construction sector GVA grew by 68.3% compared to 49.5% contraction earlier. Mining sector grew by 18.6%, as against a contraction of 17.2% a year ago.

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

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

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

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

Meanwhile, China has posted a growth of 7.9% in the AprilJune period of 2021.