UP’s GSDP grows 19.6% in first quarter

Uttar Pradesh’s estimates for the Gross State Domestic Product (GSDP) show an increase of 19.6% in the first quarter of 2021-22 (April to June 2021) as against the contraction of 22.5% in the corresponding period in 2020-21, according to the State Planning Institute (Economics and Statistics Division), Uttar Pradesh.

The GSDP (at constant prices) in the first quarter of 2021-22 is estimated to be ₹2,30,673.02 crore vis-à-vis ₹ 1,92,896.17 crore in the corresponding period in 2020-21. GSDP in the first quarter of 2019-2020 was ₹ 2,57,639.79 crore.

The GSDP (at current prices) is estimated to be Rs 4,05,835 crore in 2021-22. Uttar Pradesh’s GSDP shrank by nearly 5.9% in 2020-21 following the adverse impact of Covid-19 on the state economy. The estimated increase of 19.6% in the GSDP, therefore, indicates that the Covid-19 affected economy is fast recovering in the state but it is yet to reach the pre-pandemic level.

“Yes, these estimates show that the state economy has made a sharp recovery in Q1 of 2021-22 after the whopping contraction of 26.2% in GSDP in Q1 and 5.9% in the whole year of FY21. But these estimates have to be seen in the right perspective. Firstly, the high growth of 19.6% in the GSDP is due to “low base effect” as this growth comes over a huge contraction of GSDP in Q1 of 2020-21. Secondly, the loss in GSDP caused by Covid-19 is yet to be fully made up as the GSDP (₹ 2,30,673.02 cr) in Q1 of FY 22 is lower by 13.3% compared to the GSDP (₹ 2,61,265.50 crore) in the corresponding quarter of pre- pandemic year 2019-20,” said Professor Yashvir Tyagi, former head of the department

of economics, Lucknow University. Minister for finance Suresh Khanna, while briefing media persons recently, claimed a consistent increase in the state’s revenue collections and said UP’s economy was coming back to near normal. The Gross State Value Added estimates for the period show the highest growth in the secondary sector (40.9%) followed by tertiary (16.3%) and the primary (5.8%) sectors in the first quarter of 2021-22. In 2020-21, the contraction was 4.5% in the primary, 42.9% in the secondary and 22.8% in the tertiary sectors.

IN 2020-21, THE CONTRACTION WAS 4.5% IN PRIMARY, 42.9% IN THE SECONDARY AND 22.8% IN TERTIARY SECTORS.