India's GDP Rose by 20.1% in Q1; Construction, Mfg Clocked Highest Growth: Govt
India’s GDP is predicted to grow 18-22 percent in Q1 FY22, as per predictions by rating agencies and RBI.
India's gross domestic product (GDP) shot up to record a 20.1 per cent rise in the April-June period or the first quarter of 2021-22 against the same quarter the previous fiscal.
The Ministry of Statistics and Programme Implementation, on Tuesday, 31 August, announced:
"Real GDP has strongly bounced back in the first quarter of the Financial Year (FY) 2021-22 with growth rate of 20.1 percent as against the contraction of 24.4 percent witnessed in the Q1 of FY 2020-21."
The Gross Value Added (GVA) at basic prices during Q1 of FY22 was 18.8 percent, against -22.4 percent witnessed in the Q1 of FY 2020-21, the data showed.
The ministry added that nominal GDP has also seen a similar improvement in the first quarter FY 2021-22 with a growth rate of 31.7 percent as against the contraction of 22.3 percent witnessed in the Q1 of FY 2020-21.
Notably, performance of agriculture and allied sectors has remained consistent registering a positive growth in Q1 of both FY 2020-21 (3.5 percent) and FY 2021-22 (4.5 percent).
Sectors that witnessed double-digit growth during the Q1 of 2021-22 are:
Mining and quarrying, with 18.6 percent.
Manufacturing, with 49.6 percent.
Electricity, gas, water supply and other utility services at 14.3 percent.
Construction at 68.3 percent
Trade, hotels, transport, communication and services related to broadcasting, with 34.3 percent.
The Reserve Bank of India had earlier in the day projected a growth of 21.4 percent in the first quarter, Moneycontrol reported.
Meanwhile, ratings agency ICRA had estimated a 21 percent growth in the first quarter, while SBI's Ecowrap had estimated the growth at 18.5 percent.
The first quarter results of FY22 will offer an assessment of the damage caused by the deadly second wave.
As per government data, India's federal fiscal deficit in April-July, stood at 3.21 trillion rupees (USD 43.98 billion), or 21.3 percent of the budgeted target for the whole year, Economic Times reported.
Moreover, as per the household survey of the Centre for Monitoring Indian Economy (CMIE), the employment situation has been improving since the second week of June, while the unemployment rate improved to 9.17 percent in June, after a 12-month high of 11.9 percent in May this year.
(With inputs from ANI, Moneycontrol and The Economic Times)
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