India’s economy grew at a record pace of 20.1 per cent in April-June 2021 compared with the corresponding period last year, a nationwide lockdown imposed due to the Covid-19 pandemic had nearly halted all economic activities. The GDP had contracted 24.4 per cent in April-June 2020.
Q1 growth led by manufacturing, mining and construction sectors
Growth in the first quarter of the financial year 2022 was led by the manufacturing, mining and construction sectors, while the agriculture sector also provided strong support. The laggard was the services sector, which has been badly hit by two successive waves of the pandemic and is yet to recover from the covid impact.
The manufacturing sector grew at a faster rate of 49.6 per cent while the construction sector grew at 68.3 per cent. Meanwhile, the agriculture sector grew at 4.5 per cent on a high base as compared to 3.5 per cent growth in the year-ago quarter. The mining sector grew by 18.6 per cent as compared to a decline of 17.2 per cent in the corresponding quarter of the previous financial year.
Rapid vaccination helped the economic recovery
“Recovery supported by a rapid surge in vaccination coverage from 4.7 per cent of the total population in Q4 of 2020-21 to 24.5 per cent in Q1 of 2021-22”, the Finance Ministry said.
Positive Balance of Trade in Q1, FY22
“Exports have risen by 8.7 per cent while imports are lower by 5.3 per cent compared to pre-pandemic levels. While the services sector still continues to feel the impact of the pandemic, the industry has grown by 46 per cent to recover to 96 per cent of pre-pandemic levels”, the Finance Ministry said.
GDP at Constant (2011-12) Prices grows 20.1% in Q1, FY22
GDP in the first quarter of 2021-22 at constant (2011-12) prices is estimated at Rs 32.38 lakh crore, as against Rs 26.95 lakh crore in the first quarter of 2020-21, showing a growth of 20.1 per cent as compared to a contraction of 24.4 per cent in the first quarter of 2020-21.
GVA at Constant (2011-12) Prices grows 18.8% in Q1, FY22
The quarterly Gross Value Added (GVA) at constant (2011-12) prices for the first quarter of 2021-22 is estimated at Rs 30.48 lakh crore as against Rs 25.66 lakh crore in the first quarter of 2020-21, showing a growth of 18.8 per cent.
Sector-wise growth in Q1, FY22 (8 Core Sectors)
- Mining – 18.6%
- Construction – 68.3%
- Manufacturing – 49.6%
- Agriculture, Forestry & Fishing – 4.5%
- Electricity, Gas, Water & Other Utility Services – 14.3%
- Trade, Hotel, Transport, Broadcasting Services – 34.3%
- Financials, Real Estate, & Professional Services – 3.7%
- Public Administration, Defence & other Services – 5.8 %