Amid the coronavirus pandemic, India's gross domestic product (GDP) grew at 20.1 percent in the April-June quarter of the fiscal year 2021-22, according to official data released by the government on Tuesday evening.

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A CNBC-TV18 Poll had also estimated the GDP to 20 percent due to the low base effect.

The GPP had contracted by 24.4 percent in the corresponding April-June quarter of 2020-21, according to data released by the National Statistical Office (NSO). In 2020-21, the Indian economy contracted by 7.3 percent against 4 percent expansion in 2019-20, showing the economic impact of the COVID-19 pandemic.

In value terms, the GDP stood at Rs 32,38,020 crore in April-June 2021-22, lower than Rs 35,66,708 crore in the corresponding period of the 2019-20 financial year. The GDP had shrunk to Rs 26,95,421 crore in April-June last year during the nationwide lockdown.

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"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 percent as compared to a contraction of 24.4 percent in Q1 2020-21," the NSO said in a statement.

According to the NSO data, gross value added (GVA) growth in the manufacturing sector accelerated to 49.6 percent in the first quarter of 2021-22, compared to a contraction 36 percent a year ago. Farm sector GVA growth was up at 4.5 percent, compared to 3.5 percent earlier.

Construction sector GVA grew by 68.3 percent compared to 49.5 percent contraction earlier. Mining sector grew by 18.6 percent, as against a contraction of 17.2 percent a year ago. Electricity, gas, water supply and other utility services segment grew by 14.3 percent in the first quarter of this fiscal, against a 9.9 percent contraction a year ago.

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Similarly, trade, hotel, transport, communication and services related to broadcasting grew by 34.3 percent compared to 48.1 percent contraction earlier. Financial, real estate and professional services grew by 3.7 percent in Q1 FY22 compared to a contraction of 5 percent. Public administration, defence and other services grew at 5.8 percent during the quarter under review, compared to (-) 10.2 percent a year earlier.

The government had imposed a nationwide lockdown at the onset of the COVID-19 pandemic last year. China has recorded a growth of 7.9 percent in the April-June period of 2021.

Recently, the Reserve Bank of India (RBI) has predicted the GDP in the first quarter to grow at 18.5 percent from an earlier projected growth rate of 26.2 percent. In June this year, the apex bank slashed the GDP growth forecast for 2021-2022 from 10.5 percent to 9.5 percent.

A State Bank of India report had forecasted the April-June quarter growth at 18.5 percent in the June quarter due to the low base effect. "Based on SBI Nowcasting model, the forecasted GDP growth for Q1 FY22 would be around 18.5 per cent (with upward bias). The GVA is estimated at 15 percent," the ecowrap report said.

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Ratings agency Icra said India’s GDP is expected to grow at the “deceptively high” level of 20 per cent for the April-June quarter, but it would still remain far below the pre-Covid level. India Ratings & Research (Ind-Ra) revised India’s growth forecast to 9.4 percent for the current fiscal year 2021-22. In June, it estimated the Indian economy to grow between 9.1 and 9.6 percent.

"Ind-Ra has revised its GDP growth for FY22 to 9.4 percent year-on-year because with the ebbing of COVID 2.0, several high-frequency indicators are showing a faster rebound than expected, kharif sowing is indicating a significant pick-up with the revival of south-west monsoon and exports volume and growth showed a surprise turnaround in 1QFY22," the agency said.

A recent poll of 41 economists conducted by news agency Reuters indicated that the GDP rose 20 percent in the June quarter, compared to the record contraction of 24.4 percent in the same period a year ago.

(Edited by : Jomy Jos Pullokaran)

First Published:Aug 31, 2021 5:32 PM IST