The much-anticipated GDP growth numbers for the first quarter of fiscal 2022 released on August 31 shows that India’s growth has risen to 20.1 per cent for the quarter on a low base of last year. This is reportedly India’s best GDP growth on a quarterly basis. In the same quarter of the earlier financial year, India’s growth had seen a steep contraction of 24.4 per cent because of the pandemic-induced lockdowns.
The Q1 FY22 GDP growth of 20.1 per cent is marginally lower than the RBI’s revised growth estimate for the quarter of 21.4 per cent. Earlier, a Reuters poll of economists had estimated a 20 per cent growth for the June quarter, while SBI’s report had pegged the GDP growth rate at 18.5 per cent. For the full fiscal, the RBI has estimated a GDP growth of 9.5 per cent in its Monetary Policy Committee (MPC) in early August
The GDP in the first quarter, according to the Ministry of Statistics and Programme Implementation (MoSPI) is pegged at Rs 32.38 lakh crore (at constant prices with 2011-12 as base year) when compared to the Rs 26.95 lakh crore in the same quarter a year ago. At current prices, the GDP for the first quarter of FY22 was Rs 51.23 lakh in comparison with the Rs 38.89 lakh crore in the corresponding year-ago quarter. This is a nominal GDP growth of 31.7 per cent vis-a-vis the 22.3 per cent shrinkage in the same quarter of the last fiscal.
GVA for Q1 FY 22
According to the ministry’s announcement, the gross value added (GVA) at constant prices for Q1 of FY22 is pegged at Rs 30.48 lakh crore when compared to the Rs 25.66 lakh crore in the year-ago period, which represents a growth of 18.8 per cent.
The GVA growth has been largely aided by the 68.3 per cent year-on-year (YOY) growth in the construction sector and 49.6 per cent growth in the manufacturing sector, indicating a revival in activity in spite of the second wave of the pandemic. Further, the agriculture sector registered a growth of 4.5 per cent while trade and hotel transport registered a growth of 34.3 per cent.
The fiscal deficit for the April to July period was at 21.3 per cent of the Rs 15.07 lakh crore, which is the budgetary estimate (BE) for fiscal year 2022.
GDP growth in recent years
In the quarter prior to Q1 FY22, i.e, the January-March quarter (Q4 FY21), the GDP saw a growth of 1.6 per cent with the manufacturing sector rising 6.9 per cent and construction seeing an uptick of 14.5 per cent. However, trade, hotels and transport had shrunk by 2.3 per cent for the quarter. It may be recalled that India’s GDP was in a technical recession for the first two quarters of fiscal year 2021, with the GDP shrinking 24.4 per cent and 7.4 per cent, respectively. In the third quarter of fiscal 2021, the GDP saw a marginal growth of 0.4 per cent. For the full year 2021, the country’s GDP shrunk 7.3 per cent. This was the first such contraction of the GDP in four decades, reports suggest. India’s GDP saw a low of 4.18 per cent growth for FY20, just before the pandemic hit the country.
Meanwhile, in anticipation of the GDP growth rate data released by the government, the benchmark indices closed at new highs on August 31, with the BSE Sensex closing over 57,552 points and the Nifty breaching 17,132 levels.
India’s GDP for the first quarter of fiscal year 2022 grew at 20.1 per cent, which is its best quarterly growth ever. The current growth figures have been aided by the low base of last year. In the corresponding quarter of FY 21, India had seen a contraction of 24.4 per cent.
What is the GDP growth for Q1 FY 22, and what is its significance?
India’s GDP growth for Q1 FY22 stands at 20.1 per cent, which is the best-ever quarterly GDP growth rate for the country (aided by the low base of last year).
What was India’s GDP for fiscal year 2021?
India’s GDP for fiscal year 2021 was a contraction of 7.3 per cent, which was the first time in 40 years that the country saw degrowth, as a result of the pandemic-induced lockdowns.