India's economy grew by 4.1% in the January-March quarter of 2021-22, pushing the annual growth rate to 8.7% on account of better performance by manufacturing, mining and construction sectors, official data showed on Tuesday, May 31. In the previous fiscal 2020-21, the economy had contracted by 6.6% as the COVID-19 pandemic disrupted business activities.
The 4.1% expansion during the January-March period of 2021-22 is the lowest quarterly growth in the last fiscal. The growth was 20.1%, 8.4%, and 5.4%, in the first, second and third quarters, respectively, as per the data released by the National Statistical Office (NSO). The GDP had grown by 2.5% in the January-March quarter in the previous year.
The NSO, in its second advance estimate released in February, had projected the GDP growth during 2021-22 at 8.9%. The Economic Survey tabled in Parliament in February had estimated the GDP growth for the current fiscal (2022-23) in the range of 8 - 8.5%.
According to the NSO data, India's real GDP grew to Rs 147.36 lakh crore from Rs 135.58 lakh crore in 2020-21. Gross value added (GVA) growth during the fiscal ending March 2022 was at 8.1% as against a contraction 4.8% in the preceding year.
The GVA growth in the manufacturing sector accelerated to 9.9% during the year as against a contraction of 0.6% earlier. GVA growth in both mining and construction was 11.5%. These two large segments of the economy had contracted in the COVID-hit 2020-21.
However, agriculture sector growth decelerated to 3% from 3.3% in FY21.
Electricity, gas, water supply and other utility services segment grew by 7.5% during 2021-22. The segment had contracted by 3.6% in the previous fiscal. GVA growth in services sector -- trade, hotel, transport, communication and services related to broadcasting -- was 11.1% during 2021-22 as against a contraction of 20.2% in the previous year.
Financial, real estate and professional services grew by 4.2% in the year over 2.2% earlier. Public administration, defence and other services posted 12.6% growth against (-)5.5% in 2020-21.
"Real GDP at Constant (2011-12) Prices in the year 2021-22 is estimated to attain a level of Rs 147.36 lakh crore, as against the First Revised Estimate of Rs 135.58 lakh crore for the year 2020-21.
"The growth in GDP during 2021-22 is estimated at 8.7 percent as compared to a contraction of 6.6 percent in 2020-21," the NSO said.
Also, nominal GDP or GDP at Current Prices in 2021-22 was estimated at Rs 236.65 lakh crore, as against Rs 198.01 lakh crore in 2020-21, showing a growth of 19.5%
As per the NSO data, per capita income (based on net national income) during 2021-22 was Rs 1.5 lakh per annum at current prices, up from 1,26,855 in 2020-21, showing a growth of 18.3%. However, at constant prices, per capita annual income works out to be Rs 91,481, up 7.5% from Rs 85,110 in FY21.
Gross fixed capital formation was estimated at Rs 47.84 lakh crore in 2021-22, up from Rs 41.31 lakh crore in the preceding year.