IndiaÃ¢â‚¬â„¢s GDP grows 1.6% in Q4 2020-21 aided by manufacturing push

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IndiaÃ¢â‚¬â„¢s GDP grows 1.6% in Q4 2020-21 aided by manufacturing push

IndiaÃ¢â‚¬â„¢s GDP grows 1.6% in Q4 2020-21 aided by manufacturing push

Industry News
Jun 03,21

For the entire financial year 2020-21, the GDP contracted 7.3 per cent Ã¢â‚¬â€ a record low. In January-March last year, the economy had grown 3 per cent.

IndiaÃ¢â‚¬â„¢s GDP grows 1.6% in Q4 2020-21 aided by manufacturing push

New Delhi

As per the National Statistical Office (NSO) estimates, robust performance of the manufacturing sector has helped IndiaÃ¢â‚¬â„¢s GDP to grow by 1.6% in the fourth quarter of 2020-21. Before the second wave of the Covid-19 pandemic, IndiaÃ¢â‚¬â„¢s gross domestic product (GDP) grew 1.6 % in the fourth quarter (January-March) of 2020-21 over a 0.5 per cent growth in the previous October-December quarter. The relaxation of lockdown since the end of 2020 had increased business activity.

As per the provisional estimates of annual national income and quarterly estimates released by the National Statistical Office (NSO), the growth was mainly due to the manufacturing sector while the services sector remained comparatively sluggish. Manufacturing sector grew 6.9 % in January-March and the construction sector grew 14.5%.

For the entire financial year 2020-21, the GDP contracted 7.3 per cent Ã¢â‚¬â€ a record low. In January-March last year, the economy had grown 3 per cent.

The extent of recovery in 2021-22 will be determined by the removal of localised lockdowns, which were put in place to counter the spread in the second wave of the pandemic. According to Aditi Nayar, Principal Economist, ICRA, other key factors are whether an accelerated pace of vaccine rollout can prevent a third Covid surge. She added that, the economic outlook remains highly uncertain, and periodic material revisions to the growth forecasts may persist in FY2022. Nayar also said that, real GDP may expand in the range of 8-9.5% in FY2022.