India’s GDP in the first quarter (April-June) of the financial year 2021-’22 grew by 20.1%, government data showed on Tuesday.
The Indian economy expanded at a record 20.1% year-on-year in Q2 2021, slightly higher than market forecasts of 20%.
It follows a record 24.4% slump a year earlier when the coronavirus crisis hit the economies hard. The construction sector surged 68.3%; manufacturing jumped 49.6%; mining 18.6%; trade, hotels, transport, and communication 34.3%; and the farm sector increased 4.5%.
“The growth rates in 2021-22 in some cases are unduly high due to the low base,” the Ministry of Statistics and Programme Implementation also noted in its release.
So, a low growth rate in the previous year leads to a low base for the current year’s numbers.
Hit by a nationwide lockdown due to the coronavirus pandemic, India’s economic activities were stalled during the April-June period last year. For the entire financial year of 2020-’21 too, the country recorded a contraction of 7.3% in the economy.
The economy has, in fact, growing at a slower pace in the first quarter, when compared to the fourth quarter (January-March) of the previous financial year.
The country’s GDP in the April-June quarter of this financial year rose by Rs 51.2 lakh crore. It had grown by Rs 56.8 lakh crore in the fourth quarter of the previous fiscal, government data showed.
All the sectors showed growth from the previous financial year.
The manufacturing and construction sectors, which were the worst affected during last year’s lockdown, grew at the fastest pace. The manufacturing growth rate came at 49.6%, while construction grew by 69.3%. Agriculture, which had registered growth even last year, grew by 4.5% in the April-June quarter in this financial year.
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