Q1 GDP: India's economy grew 20.1% in the April-June quarter
India's economy grew by 20.1% during the April-June quarter of this financial year, as against a 24.4% contraction seen during the same period last year. The massive growth seen in the first quarter has made India the fastest-growing major economy across the globe.
The sharp rise in Q1 GDP data can be mainly attributed to a low base last year. The GDP contracted by 24.4% in the same quarter last year as the country went into a lockdown to curb the spread of the coronavirus.
Data released by the National Statistical Office on August 31 showed that the real gross value added for Q1 rose by 18.8%. In the first quarter, the manufacturing sector, rose by 49.6 per cent on the year, while the construction sector grew at 68.3 per cent. The construction sector saw the steepest fall in the same period last year at 49.5% as construction activity across the country had come to a halt. The sector of trade, hotels, transport, communication & services related to broadcasting gained 34.3 per cent.
Apart from this, the agriculture, forestry and fishing sector grew 4.5 per cent in Q1. In April-June FY21 the sector had reported a growth of 3.5% on-year.
As per a poll of 41 economists by news agency Reuters, India's GDP was expected to rise 20% in April-June 2021. The Reserve Bank of India had projected Q1 GDP to grow by 21.4%.
Though better, sectoral and headline numbers indicate that the recovery has not been as sharp as the contraction in the previous year, mostly due to the second COVID wave that peaked in May. The household consumption remained the same in a quarter with nationwide lockdown compared to a quarter in which there was economic activity.
The Modi Government's infrastructure and public investment push showed in the Gross Fixed Capital Formation figures, which came at 31.6% against 24.4% in the same period of the previous fiscal.