India’s economy grew by 4.1 per cent in the January-March quarter of 2021-22 (Q4FY22), pushing the annual growth rate to 8.7 per cent on account of better performance by manufacturing, mining and construction sectors. In the previous fiscal 2020-21, the economy had contracted by 6.6 per cent as the COVID-19 pandemic disrupted business activities. The National Statistical Office (NSO), in its second advance estimate released in February, had projected the GDP growth during 2021-22 at 8.9 per cent. The data released by the NSO showed that the 4.1 per cent expansion during the January-March period of 2021-22 is the lowest quarterly growth in FY22. The growth was 20.1 per cent, 8.4 per cent, and 5.4 per cent, in the first, second and third quarters, respectively. The GDP had grown by 2.5 per cent in the January-March quarter in the previous year.
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 per cent as against a contraction 4.8 per cent in the preceding year. The GVA growth in the manufacturing sector accelerated to 9.9 per cent during the year as against a contraction of 0.6 per cent earlier. GVA growth in both mining and construction was 11.5 per cent. These two large segments of the economy had contracted in the COVID-hit 2020-21.
However, agriculture sector growth decelerated to 3 per cent from 3.3 per cent in FY21. Electricity, gas, water supply and other utility services segment grew by 7.5 per cent during 2021-22. The segment had contracted by 3.6 per cent in the previous fiscal. GVA growth in services sector - trade, hotel, transport, communication and services related to broadcasting - was 11.1 per cent during 2021-22 as against a contraction of 20.2 per cent in the previous year. Financial, real estate and professional services grew by 4.2 per cent in the year over 2.2 per cent earlier. Public administration, defence and other services posted 12.6 per cent growth against (-)5.5 per cent in 2020-21.
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 per cent 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 per cent. However, at constant prices, per capita annual income works out to be Rs 91,481, up 7.5 per cent 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.
