India’s economy grew at a record pace of 20.1 % in the first quarter of 2021-22 in comparison with the period last year, when national lockdown due to the COVID-19 pandemic has nearly halted all economic activities. The GDP contracted to 24.4 % in the same quarter a year ago.
As per the National Statistical Office (NSO), Gross Value Added (GVA) in the economy during April to June period rose to 18.8 % from a dip of 22.2% in the first quarter of 2020-21. GVA from agriculture, forestry, and fishing are the only sector to grow amid last year’s national lockdown and picked up the pace to grow 4.5% in Q1 this year from 3.5%.
Data released by NSO, however, shows that the economy continues to limp towards recovery. The GDP in absolute terms at Rs 32.38 lakh crore in the first quarter is still 9.2% lower than the GDP in the same period during the pre-COVID year.
Indicating to this and the sequential slowdown of 16.9% over the last quarter ICRA chief economist Aditi Nayar said that sharp year-on-year expansion in Q1 is analytically misleading. GVA of Construction and manufacturing recorded a 68.3% and 49.6% uptick between April and June this year, compared to a 49.5% and 36% contraction, respectively, last year.
Chief Economic Advisor Krishnamurthy Subramanian said growth for the full year is likely to remain around the ‘ballpark’ of 11% as projected by the Economic Survey.