- Gross Domestic Product is the market worth of all final products and services generated within an economy.
- According to the National Statistical Office (NSO), the economy’s Gross Value Added (GVA) increased 18.8% from April to June, compared to a 22.2 percent drop in the first quarter of 2020-21.
- Along with agriculture, forestry, and fisheries, electricity, gas, water supply, and other utility services were the only sectors to return beyond pre-pandemic levels in 2019-20.
- Because of the low base, some of the growth rates in 2021-22 are excessively high. Year-over-year economic metrics, such as the GDP growth rate, are calculated. As a result of the prior year’s low growth rate, the current year’s stats have a low starting point.
- During the April-June period of last year, India’s economic activity were halted due to a statewide lockdown caused by the coronavirus pandemic. The Indian GDP shrank by 7.3 percent for the entire fiscal year 2020-21.
- In reality, the economy grew at a slower pace in the first quarter than in the previous financial year’s fourth quarter (January-March). The country’s GDP increased by Rs 51.2 lakh crore in the April-June quarter of this fiscal year. According to government figures, it increased by Rs 56.8 lakh crore in the fourth quarter of the preceding year.
- The Indian economy expanded at a record rate of 20.1 percent in the first quarter of this fiscal year, although output levels remained below those seen before the Covid-19 era, according to data issued by the National Statistical Office (NSO) on Tuesday 31st of August.
- In the three-month period, gross domestic product increased by 20.1 percent, compared to a record decrease of 24.4 percent in the same quarter a year ago.
- According to figures, GDP increased by 20.1 percent in the last three months, compared to a fall of 24.4 percent in the same quarter in 2020.
- GDP at constant prices (2011-12) was Rs 32.38 lakh crore in Q1 2021-22, compared to Rs 26.95 lakh crore in Q1 2020-21.
- Quarterly GVA at Basic Price at Constant (2011-12) Prices for Q1 2021-22 was Rs 30.48 lakh crore, up from Rs 25.66 lakh crore in Q1 2020-21, representing an increase of 18.8%.
- This is India’s fastest growth rate since quarterly data began to be published.This growth is a little slower than the Reserve Bank of India’s forecast (21.4 percent ).
- The electricity, gas, water supply, and other utility services segment expanded 14.3% in the first quarter of the current fiscal year, compared to a 9.9% contraction the previous year.
- Similarly, trade, hotel, transportation, communication, and broadcasting services expanded by 34.3 percent, compared to a decline of 48.1 percent the year before.
- In Q1 FY22, financial, real estate, and professional services expanded by 3.7 percent, compared to a 5% contraction in the previous quarter.
- During the quarter under examination, public administration, defence, and other services rose at 5.8%, compared to (-) 10.2% a year ago.
Economic and social Impact
- GDP must increase because it leads to better national income and higher living standards. When it doesn’t increase, for example, because of a lack of customer demand, it lowers the average income of enterprises.
- GDP growth enhances financial inclusion and generates additional opportunities in the labour market.
- Provides better economic growth, enables a rise in the standard of living of people, including those at the very bottom.
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