Despite COVID-19 curbs, India's April-June GDP growth zooms 20.1% YoY

The Indian economy, which has been deteriorating for a long time, seems to be improving now. In the first quarter of the financial year 2021-22, the Gross Domestic Product (GDP) figures have arrived. The growth rate of GDP in the first quarter has been a record 20.1 percent. This splendid figure is telling that amid the coronavirus crisis, there is good news on GDP for the central government. GDP is the most accurate measure to measure the economic health of any country.

The Central Government has released the GDP results for the first quarter of the current financial year. According to this, the GDP growth rate in the first quarter is a record 20.1%. Whereas in the same quarter last year, there was a negative 23.9 percent GDP growth rate. That is, this time the figure is moving towards improving the condition of the economy.

Earlier, the RBI had estimated GDP growth of 21.4 percent for the April-June 2021 quarter. At the same time, it was estimated in SBI's Ecowrap research report that the country's GDP could grow at the rate of 18.5 percent in the first quarter of the current financial year. That is, this figure is just slightly less than the estimate of RBI. However, with the sharp recovery in GDP, there are signs of the economy getting back on track.

Notably, the Indian economy saw a bad phase due to the coronavirus crisis. In the first quarter of the financial year 2020-21, a huge decline of 23.9 percent was seen in the GDP. After that, GDP declined by 7.5 percent in the second quarter, while in the third quarter it was 0.4%. Whereas in the fourth quarter (January-March), the GDP growth rate was recorded at 1.6 percent. In this way, the overall GDP growth rate for the financial year 2020-21 was -7.3% per cent. That is, now it can be said that this figure of GDP seems to be moving towards the 'Acche Din' of the Indian economy.

Sector wise GDP in Q1 last year

• Q1 GDP growth up from -24.4% to 20.1% (YoY)
• Q1 GVA growth up from -22.4% to 18.8% (YoY)
• Q1 Farm Sector Growth up from 3.5% to 4.5% (YoY)
• Q1 Mining Sector Growth from -17.2% to 18.6% (YoY)
• Q1 Manufacturing Sector Growth from -36% to 49.6% (YoY)
• Q1 Construction Sector Growth -49.5% to 68.3% (YoY)
• Q1 Nominal GDP growth up from -22.3% to 31.7% (YoY)
• Q1 Service Sector Growth from -21.5% to 11.4% (YoY)
• Q1 Industries Sector Growth up from -35.8% to 46.1% (YoY)