GDP Data: Indian Economy Grows 1.6% in Q4; Contracts 7.3% in FY21

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India”s economy grew by 1.6 per cent in the fourth quarter of 2020-21, restricting the full-year contraction to 7.3 per cent, according to data released by the National Statistical Office today.

As per the study, the fourth quarter growth was better than the 0.5 per cent expansion in the previous October-December quarter of 2020-21. The gross domestic product (GDP) had expanded by 3 per cent in the corresponding January-March period of 2019-20.

In 2020-21, the Indian economy contracted by 7.3 per cent against 4 per cent expansion in 2019-20, showing the economic impact of the COVID-19 pandemic.

The NSO had projected a GDP contraction of 7.7 per cent in 2020-21 in its first advance estimates of national accounts released in January this year. The NSO, in its second revised estimates, had projected a contraction of 8 per cent for 2020-21. “The 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 lakh crore, as against the First Revised Estimate of GDP for the year 2019-20 of ₹ 145.69 lakh crore, released on 29th January 2021. The growth in GDP during 2020-21 is estimated at -7.3 percent as compared to 4.0 percent in 2019-20,” reads the data released by the Ministry of Statistics and Programme Implementation.

As per the study, the GDP at current prices in the year 2020-21 is estimated to attain a level of Rs 197.46 lakh crore, as against the first revised estimates of Rs 203.51 lakh crore in 2019-20, showing a change of -3.0 percent as compared to 7.8 percent in 2019-20. The fiscal deficit of the country is at 9.3 per cent of GDP in 2020-21, down from the revised estimate of 9.5 per cent. GDP at Constant (2011-12) Prices in Q4 of 2020-21 is estimated at Rs. 38.96 lakh crore, as against Rs. 38.33 lakh crore in Q4 of 2019-20, showing a growth of 1.6 percent.