NEW DELHI — India’s GDP grew by 20.1 percent in the April to June quarter (Q1 FY22) compared to a contraction of 24.4 percent in the first quarter of FY21, as per government data.
GDP data for the first quarter 2021-22 reaffirms the government prediction of an imminent V-shaped recovery, said Chief Economic Advisor (CEA), Krishnamurthy Subramanian, on Aug. 31.
He said that the Gross nonperforming assets (NPAs) declined from 11.2 percent in March (2018) to 7.4 percent in March.
“Gross NPA (nonperforming asset) declined from 11.2 percent in March (2018) to 7.4 percent in March (2021),” Subramanian said.
“GDP data for the first quarter 2021-22 reaffirms the government prediction of an imminent V-shaped recovery that we had made last year this time.”
A better-than-expected manufacturing performance, a milder hit to services, and a rebound in consumer spending helped the Q1 growth despite the second wave of Covid 19 cases.
The period from April to June had less stringent lockdown norms than in the same period of last year, with demand staying resilient.
Besides, steady growth in exports and the robust performance of the agricultural sector are expected to give a push to GDP growth in the current fiscal year.
Subramanian said that there has been a steady recovery in petroleum consumption and auto sales, reaching pre-pandemic levels.
He said that despite supply-side restrictions due to the COVID-19 pandemic, inflation was much lower than during the global financial crisis due to supply-side measures.
GDP is derived as the sum of the gross value added (GVA) at basic prices plus all taxes on products less all subsidies on products. The total tax revenue used for GDP compilation includes non-GST revenue and GST revenue.
“GDP at constant (2011-12) prices in Q1 of 2021-22 is estimated at INR 32.38 lakh crore ($443.4 billion) as against INR 26.95 lakh crore ($369.08 billion) in the first quarter of 2020-21, marking a growth of 20.1 percent as compared to a contraction of 24.4 percent in the first quarter of 2020-21,” said the National Statistical Office.
Quarterly gross value added at the introductory price at constant (2011-12) expenses for the first quarter of 2021-22 is estimated at INR 30.48 lakh crore ($417.41 billion) as against INR 25.66 lakh crore ($351.4 billion) in the first quarter of 2020-21, showing a growth of 18.8 percent.
GDP at current prices in the year in the first quarter of 2021-22 is estimated at INR 51.23 lakh crore ($701.5 billion) as against INR 38.89 lakh crore ($532.5 billion) in the first quarter of 2020-21, showing a growth of 31.7 percent as compared to a contraction of 22.3 percent in the first quarter of 2020-21.
Gross value added at basic price at current prices in the first quarter of 2021-22 is estimated at INR 46.2 lakh crore ($632.8 billion) as against INR 36.53 lakh crore ($500.3 billion) in the first quarter of 2020-21, showing a growth of 26.5 percent.
“External sector providing a stable cushion. Forex reserves continue to grow. Despite supply-side restrictions due to pandemic, inflation was much lower than during GFC (global financial crisis) because of supply-side measures,” said the Chief Economic Advisor.
(With inputs from ANI)
Edited by Saptak Datta and Praveen Pramod Tewari
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