Q4 records 1.6% GDP growth in India, but fiscal year recorded 7.3% shrink
Government data released on Monday showed India’s GDP growth of 1.6 per cent in fourth quarter (January to March) but the entire fiscal year 2020-21 had a contraction of 7.3 per cent. This contraction has been the lowest in India for entire fiscal year in last four decades. The lowest before this was recorded in 1979-80 when GDP (gross domestic product) had shrunk by 5.2 per cent.
India’s GDP recorded a growth of 3 per cent in Q4 of FY20, while growth for FY20 was 4 per cent, which was a staggering 11-year low.
The National Statistical Office data showed gross value added (GVA) growth recorded in the manufacturing sector increased to 6.9 per cent in the fourth quarter (Q4) of 2020-21 as compared to 4.2 per cent shrinkage recorded a year ago. GVA growth in farm sector fell at 3.1 per cent, compared to 6.8 per cent in same period of 2019-20. Construction sector GVA witnessed a growth by 14.5 per cent from 0.7 per cent growth last fiscal year.
Mining sector contracted by 5.7 per cent, while last year the contraction was 0.9 per cent. Sectors like trade, hotel, transport, communication and services related to broadcasting shrunk by 2.3 per cent in the fourth quarter compared to 5.7 per cent growth earlier.
Electricity, gas, water supply and other utility services segment recorded a growth of 9.1 per cent in the fourth quarter, as compared to 2.6 per cent growth a year ago. Financial, real estate and professional services expanded by 5.4 per cent in Q4 this fiscal year from earlier 4.9 per cent growth.
Ministry of Statistics & Programme Implementation in a statement said, “Real GDP or Gross Domestic Product (GDP) at Constant (2011-12) Prices in the year 2020-21 is now estimated to attain a level of ₹135.13 trillion, as against the First Revised Estimate of GDP for the year 2019-20 of ₹145.69 trillion, released on 29th January 2021. The growth in GDP during 2020-21 is estimated at -7.3 per cent as compared to 4.0 per cent in 2019-20.”