Thursday 2 September 2021

India First Quarter GDP Growth of FY 2021-22 - vrk100 - 02Sep2021

India First Quarter GDP Growth of FY 2021-22 


A few days ago, Indian government announced GDP (gross domestic product or annual income) estimates for the first quarter of financial year 2021-22. The real GDP (at constant prices) for the first quarter is Rs 32.38 lakh crore, showing a growth of 20.1 per cent as compared to the first quarter of FY 2020-21.

It may be noted that the real GDP in Q1 of FY 2020-21 contracted by 24.4 per cent due to severe lockdown imposed by the Modi government after the COVID-19 outbreak. 

Table 1 - Real GDP (click on the image for a better view):


As shown in the table 1 above, the first quarter GDP for FY 2021-22 is still below the real GDP number of Rs 35.67 lakh crore in Q1 of FY 2019-20.

The COVID-19 pandemic has severely hit services sector during the Apr-Jun 2021 quarter also, though agriculture and manufacturing sectors have done reasonably.

Table 2 - GDP at current prices (click on the image for a better view): 

 

As shown in table 2 above, the first quarter GDP for FY 2021-22 at current prices is Rs 51.23 lakh crore, showing a growth of 31.7 per cent versus the first quarter of FY 2020-21.

It is expected the economic recovery will continue for the next two quarters with expectations of a 9 to 10 per cent real GDP growth for the fully year of 2021-22.

Note: India's financial year starts from April to March of every year.

Reference: MOSPI press note dated 31Aug2021


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Disclosure:  I've vested interested in Indian stocks and other investments. It's safe to assume I've interest in the financial products discussed, if any.

Disclaimer: The analysis and opinion provided here are only for information purposes and should not be construed as investment advice. Investors should consult their own financial advisers before making any investments. The author is a CFA Charterholder with a vested interest in financial markets. 

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