India’s gross domestic product (GDP) grew at a record pace of 20.1 per cent in the first quarter of FY22, as per official data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Tuesday. The same period a year ago, India’s economy contracted 24.4 per cent.
“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 per cent as compared to a contraction of 24.4 per cent in Q1 2020-21,” said the statement released by Ministry of Statistics and Programme Implementation.
The Gross Value Added (GVA) at basic prices during Q1 of FY22 was 18.8 per cent, against (-)22.4 per cent in the corresponding quarter year ago, the data showed.
The record growth in the April-June quarter comes on the back of a weak base and a sharp rise in consumption demand. The Indian economy had contracted by a record (-)24.4 per cent in the corresponding quarter last year owing to the impact of the nationwide lockdown that was imposed to curb the transmission of Covid-19.
In value terms, the GDP stood at Rs 32,38,020 crore in Q1 FY22, higher than Rs 26,95,421 crore in corresponding period of FY21 but lower than Rs 35,66,708 crore in Q1 FY20.
In the first quarter, the manufacturing sector, rose by 49.6 per cent against a contraction of (-)36 per cent a year ago, while the construction sector grew at 68.3 per cent in Q1 FY22 vs. (-)49.5 per cent a year ago. The sector of trade, hotels, transport, communication & services related to broadcasting gained 34.3 per cent against a contraction of (-)48.1 per cent.
Apart from this, the agriculture, forestry and fishing sector which had grown at 3.5 per cent in the corresponding quarter last year, grew 4.5 per cent in Q1 FY22, the MoSPI data showed. Electricity, gas, water supply and other utility services segment grew by 14.3 per cent in the first quarter of this fiscal, against a 9.9 per cent contraction a year ago.
The financial, real estate and professional services grew by 3.7 per cent in Q1 FY22 compared to a contraction of (-)5.0 per cent, while public administration, defence and other services grew at 5.8 per cent, compared to (-)10.2 per cent a year earlier.
Soon after the MoSPI data was released, former Finance Minister and senior Congress leader P. Chidambaram said that the data signifies that in the first quarter of this year, the country has not fully recovered from the decline of last year. “Before we ‘celebrate’ the 20.1 per cent GDP growth in Q1 (April-June) of 2021-22, please pause to consider the following. This ‘growth’ is on a low, actually negative, base of (-)24.4 per cent in Q1 of 2020-21,” tweeted the Congress leader.
Chidambaram further said that this data signifies “in the first quarter of this year, we have not fully recovered from the decline of last year”.
“We are still below the GDP level in the first quarter of the pre-pandemic year 2019-20. We have still some distance to go before the economy can be said to have achieved the pre-pandemic level,” he added.