India's gross domestic product (GDP) soared to a record high of 20.1 per cent in the first quarter of 2021-22, data released on Tuesday, 31st August, revealed.
The record growth in the April-June quarter comes on the backdrop of a weak base and a sharp rise in consumption demand, India Today reported.
"GDP at Constant (2011-12) Prices in Q1 of 2021-22 is estimated at Rs 32.38 lakh crore, as against Rs 26.95 lakh crore in Q1 of 2020-21, showing a growth of 20.1 per cent as compared to a contraction of 24.4 per cent in Q1 2020-21," Ministry of Statistics and Programme Implementation said in the released statement.
In simpler terms, in the first quarter, the economy rose to 20.1 per cent of the financial year compared to the same time one year ago when the economy contracted by 24.4 per cent. The GDP percentage is said to be in line with what economists had predicted earlier.
In addition, the Gross Value Added (GVA) has shown an increase of 18.8 per cent in the first quarter.
"Quarterly GVA at Basic Price at Constant (2011-12) Prices for Q1 of 2021-22 is estimated at Rs 30.48 lakh crore, as against Rs 25.66 lakh crore in Q1 of 2020-21, showing a growth of 18.8 per cent," the statement said.
Fastest Quarterly GDP Expansion Since 1990s
From the mid-1990s, when documenting of the official growth data started, this has been reportedly the fastest quarterly GDP expansion. While in the fourth quarter of FY21, the GDP growth was 1.6 per cent. The GDP growth is likely due to a low base last year.
The GDP growth is, however, yet to reach 2019 levels despite rebounding at a record pace.
GVA from agriculture, forestry, and fishing witnessed growth amid the national lockdown announced last year and has continued to grow 4.5 per cent in Q1 of 2021-22.
Electricity, gas, water supply, and other utility services was the other sector that grew 14.3 per cent in Q1.
Rating agency Icra had earlier said that the sharp rise in the first quarter of this fiscal would be "deceptive" because of the abrupt contraction in the corresponding period a year ago.
The bouncing back of GDP could have been higher in the first quarter but was put down due to the second wave of COVID-19, which compelled most of the states to impose lockdowns. At one point, localised restrictions were put across 98 per cent of the country.
However, during the second wave, the economy recovered faster as the central government did not go for a complete national lockdown and lockdowns were not as strict as observed during the first wave.