Estimates of Gross Domestic Product for the First Quarter of 2021-22

• The National Statistical Office (NSO) has released the estimates of Gross Domestic Product (GDP) for the first quarter (April-June) of 2021-22, both at Constant (2011-12) and Current Prices.
• India’s GDP is grown by 20.1% during the April-June quarter of 2021-22, as against a 24.4% contraction seen during the same period in 2020-21.
• It is marked as the fastest rate of growth in India in a quarter.

Key points:

• India’s GDP at constant prices in the first quarter stood at Rs 32.38 lakh crore.
• However, it is still lower than the Rs 35.66 lakh crore seen in the first quarter of 2019-20.
• GDP at Current Prices in the year Q1 2021-22 is estimated at ₹ 51.23 lakh crore, as against ₹ 38.89 lakh crore in Q1 2020-21, showing a growth of 31.7 percent as compared to the contraction of 22.3 percent in Q1 2020-21.
• Gross Value Added (GVA) during the first quarter rose 18.8%, from a 22.2% dip in the first quarter of 2020-21.
• GVA from agriculture, forestry, and fishing, picked up the pace to grow 4.5% in Q1 this year compared to 3.5% in Q1 2020-21.
• In electricity, Gas, Water Supply & Other Utility Services, GVA growth is 14.3% in Q1 of 2021-22, compared to a 9.9% fall last year.
• Construction and Manufacturing GVA recorded a 68.3% and 49.6% growth in the first quarter of 2021-22.
• The RBI and the IMF had revised their growth projections for the year 2021-22 to 9.5%.

Gross Value Added (GVA):

• It is how much value was added (in money terms) in different productive sectors of the economy in a specific time period.
• It tracks the total output in the economy by looking at the total supply.

Gross Domestic Product (GDP):

• It is the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period.
• GDP = (GVA) + (Taxes earned by the government) — (Subsidies provided by the government)
• If the government earned more from taxes than what it spent on subsidies, GDP will be higher than GVA.
• And, If the government provided subsidies in excess of its tax revenues, the absolute level of GVA would be higher than the absolute level of GDP.

GDP consists 4 components: GDP = C + I + G + NX

1. consumption (C) demand from private individuals.
2. investment (I) demand generated by private sector businesses.
3. demand for goods and services generated by the government (G).
4. demand created by “Net Exports” (NX) (i.e Export -- Import).