GDP grows 20.1% in Q1 but shows impact of second Covid wave


Last Updated: Dec 13, 2022 - 10:49 pm 54.1k Views
Listen icon

India’s gross domestic product (GDP) grew 20.1% in the April-June quarter of 2021-22 from the low base of last year when the country was under a strict lockdown for almost two months to control the Covid-19 pandemic. The GDP had contracted 24.4% in the first quarter of 2020-21, the deepest quarterly contraction India ever recorded.

The GDP print for the first quarter is on a par with estimates in a Reuters poll of 41 economists, which had projected a 20% expansion. But it was a tad below the Reserve Bank of India’s projection of 21.4%.
According to data released by the National Statistical Office on Tuesday, the real gross value added for Q1 rose 18.8%.

Trade, Hotels, Transport and Communication Services Grew Fastest

Trade, hotels, transport and communication services recorded the fastest growth, at 68.3%. This sector had contracted 48.1% in the April-June period of last year. The manufacturing sector grew 49.6%, bouncing back after shrinking 36% in April-June last year.

While the comparison with year-earlier numbers shows the economy has rebounded strong, the impact of the devastating second wave of Covid-19 is clearly evident. The second wave hit India hard during April-

May this year, leading to several localised lockdowns and hurting business activity. This is obvious from the fact that India’s gross domestic product in absolute terms was Rs 32.38 lakh crore during April-June this year, down from Rs 38.96 lakh during the January-March period.

Another example is Private Final Consumption Expenditure, which indicates household consumption. Private Final Consumption Expenditure as a rate of GDP was 55.1%in the first quarter of this fiscal year compared with 55.4%a year earlier. The silver lining, however, is the increase in Gross Fixed Capital Formation to 31.6%from 24.4%.
 

Share Market Today


How do you rate this article?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

378X91-D3

About the Author


Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest News
Trust Fintech IPO Subscribed 108.63 times

Trust Fintech IPO is book-built issue of ₹63.45 crores, consisting entirely of fresh issue shares totalling 62.82 lakh. Trust Fintech IPO commenced its subscription period on March 26, 2024, & concludes today, March 28, 2024.

Aspire & Innovative IPO Subscribed 15.17 times

Aspire & Innovative IPO is a book built issue of Rs 21.97 crores. The issue comprises entirely a fresh issue of 40.68 lakh shares. Aspire & Innovative IPO opens for subscription on March 26, 2024, and closes on March 28, 2024. The allotment for the Aspire & Innovative IPO is expected to be finalized on Monday, April 1, 2024.

Blue Pebble IPO Subscribed 56.32 times

Blue Pebble IPO, valued at ₹18.14 crores, comprises fresh issue of 10.8 lakh shares. Commencing subscription on March 26, 2024, Blue Pebble IPO is set to conclude on March 28, 2024. Allotment process is scheduled to be finalized by Monday, April 1, 2024. Following this, IPO is slated to debut on NSE SME, with tentative listing date of Wednesday, April 3, 2024.