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GDP Growth Jumps to 20.1% in Q1 on Low Base, but Still not at Pre-COVID Level

The GDP had contracted by 24.4% in the corresponding April-June quarter of 2020-21, according to data released by the National Statistical Office on Tuesday.


New Delhi: India's economic growth surged to 20.1% 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% 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 contraction of 24.4 percent 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 with a contraction 36% a year ago.

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

Construction sector GVA grew by 68.3% compared with 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 with 48.1% contraction earlier.

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

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

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