India's GDP Growth rebounds after Covid hit slump, grows 20.1% in first quarter of current fiscal

The Gross Domestic Product (GDP) of the country surged 20.1 per cent in the April-June quarter of the current fiscal. According to the Ministry of Statistics and Programme Implementation data released on Tuesday is its best-ever fiscal-quarter numbers.

GDP in the first quarter of 2021-22 is estimated at 32.38 lakh crore rupees at Constant Prices of 2011-12 as against 26.95 lakh crore rupees in the same period of last fiscal showing a growth of 20.1 per cent.

The GDP logged a high growth amid the opening of the economy after the lockdown to arrest Covid-19 and low base effect as the economy witnessed a contraction of 24.4 per cent in the first quarter of 2020-21 fiscal. Quarterly GVA at Basic Price at Constant (2011-12) Prices for Q1 of 2021-22 is estimated at Rs 30.48 lakh crore, as against Rs 25.66 lakh crore in Q1 of 2020-21, showing a growth of 18.8 per cent.

GDP at Current Prices in the year Q1 2021-22 is estimated at Rs 51.23 lakh crore, as against Rs 38.89 lakh crore in Q1 2020-21, showing a growth of 31.7 per cent as compared to a contraction of 22.3 per cent in Q1 2020-21. GVA at Basic Price at Current Prices in Q1 2021-22, is estimated at Rs 46.20 lakh crore, as against Rs 36.53 lakh crore in Q1 2020-21, showing a growth of 26.5 per cent.

The economic growth witnessed a significant improvement from a deep slump last year helped by accelerated manufacturing in spite of a devastating second wave of coronavirus infections.

Chief Economic Advisor Krishnamurthy Subramanian has said that GDP data for the first quarter reaffirms the Government's prediction of an imminent V-shaped recovery made last year. Briefing media this evening, Mr Subramanian said, the banking sector has now developed a cushion to withstand impending bad loans. He said, inflation is expected to be in the 5 to 6 per cent range going forward.

The Chief Economic Advisor said, India is poised for stronger growth from structural reforms, Government CAPEX push and rapid inoculation. He said, high-frequency indicators such as the Google mobility indicator shows activity has picked up, even grocery activity has picked up to pre-covid levels. Mr Subramanian said, MNREGA work requirement has declined in August. He said, power consumption is indicating strong recovery as well.