Amid coronavirus pandemic, India’s Gross Domestic Product (GDP) grew at 1.6 per cent in the January-March quarter of 2020-21. However, there was a contraction of 7.3 per cent in the GDP for the entire financial year of FY21, according to the government data put out on Monday. The country’s GDP figures showed the growth at 3 per cent in Q4 of FY20, while growth for FY20 came at 4 per cent, an 11-year low. 

This is the second straight quarter of expansion since India exited a rare recession. The economy snapped out of technical recession in the October-December quarter of 2020-21 and expanded by a revised 0.5 per cent, after reporting two consecutive quarters of de-growth in the same financial year.

“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 Rs 135.13 lakh crore as against the First Revised Estimate of GDP for the year 2019-20 of Rs 145.69 lakh crore, released on January 29, 2021. The growth in GDP during 2020-21 is estimated at (-) 7.3 per cent as compared to 4 per cent in 2019-20,” said the Ministry of Statistics and Programme Implementation in a statement. 

The sectoral performance in Q4 of FY21 reveals that there was definitely a recovery in manufacturing, construction and finance and real estate numbers, which would have boded well for FY22. However, with the second wave leading to a closedown of services sector, in particular, progress might remain muted. 

The National Statistical Office (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. China has recorded an 18.3 per cent growth in January-March 2021. 

Reserve Bank of India’s Monetary Policy Committee, in its first bi-monthly monetary policy review for the new financial year of 2021-22, has retained its GDP growth projection at 10.5 per cent in 2021-22.