GDP Data Comparison

India’s nominal GDP in 2021 was predicted to be $3,050 billion at current prices, according to the IMF World Economic Outlook (April – 2021). According to this forecast, India will be the world’s sixth-largest economy, down from fifth place in 2019. India was ranked 5th highest in 2019 and 17th lowest in 1991. India accounts for 3.25 per cent of the global GDP. India’s economic share of the global economy has risen from 1.08 per cent in 1993 to 3.27 per cent in 2019. After China and Japan, India is the third-largest Asian country. India accounts for roughly 9% of Asia’s overall GDP (nominal).  

According to PPP, India’s GDP will be worth $10,207 billion in 2021, ranking third in the world behind the United States and China. India accounts for 7.19 per cent of the global GDP (PPP). India accounts for nearly 16% of Asia’s overall GDP (PPP). India’s GDP at purchasing power parity (PPP) is 3.35 times that of the country’s nominal GDP. In nominal terms, the Indian economy surpassed the $1 billion barriers in 2007 and the $2 billion mark in 2014. In terms of purchasing power parity, India passed the one billion barriers in 1990. Since 1960, when the country’s GDP was 37 million dollars, estimates from the World Bank have been available. As far as the Indian economy is concerned, the years 2002-19 are the best.

What is GDP?

The gross domestic product (GDP) is the single most often used indicator of a country’s economic health: a single number that represents the monetary value of all finished products and services produced within a country’s boundaries during a certain period. Although GDP is simple to define, it is difficult to calculate, and different countries use different methodologies.  India’s GDP is evaluated using two methodologies, estimating results that are in range but not identical. The first is computed by considering the economic activities , whereas the second is done by considering the expenditure. Nominal GDP and real GDP are furthermore evaluated. The GDP considered at factor cost is the most reported and observed figure among the four already provided figures.

Indian GDP GROWTH 2021

In the final quarter of 2021, India’s GDP grew by 5.4 per cent year on year, down from an upwardly revised 8.5 per cent in the preceding quarter and below market estimates of 6%. Consumer demand was boosted by the holiday season, governmental assistance, and a quick drop in coronavirus incidence, resulting in the fifth consecutive quarter of growth. Trade, hotels, transportation, and communication (6.1 per cent), real estate, financial, and professional services (4.6 per cent), defence and public administration, and other services (4.6 per cent) all contributed to service activity growth (16.8 per cent). Manufacturing (0.2%), mining and quarrying (8.8%), utilities (3.7%), construction (2.8%), and agriculture (0.2%) all saw increases in output (2.6 per cent ). The economy grew 8.2 per cent for the entire fiscal year 2021/22, compared to the 9.2 per cent growth expected in the initial advance projections. 

The Indian economy grew at a record rate of 20.1 per cent in the second quarter.

Despite the second wave of covid-19 infections and localised lockdowns, the Indian economy grew at a record 20.1 per cent year-on-year in Q2 2021, slightly more than market expectations of 20 per cent. This was despite a low base effect from the previous year and a low base effect from last year. It contrasts to a 24.4 percent drop a year ago, when the coronavirus epidemic wreaked havoc on the economies. Construction increased by 68.3 percent in Q2 2021, manufacturing by 49.6 per cent, trade, hotels, transportation, and communication by 34.3 per cent, mining by 18.6 per cent, utilities by 14.3 per cent, agriculture by 4.5 per cent, and financial and real estate by 3.7 per cent. Private spending climbed by 19.3 per cent, investment by 55.3 per cent, exports by 39.1 per cent, and imports by 60.2 per cent, while public spending fell by 4.8 per cent. In the current fiscal year, the Reserve Bank of India forecasts annual growth of 9.5 per cent.

In the fourth quarter, GDP grew at a slower pace than expected.

In the final quarter of 2021, India’s GDP grew by 5.4 per cent year on year, down from an upwardly revised 8.5 per cent in the preceding quarter and below market estimates of 6%. Consumer demand was boosted by the holiday season, governmental assistance, and a quick drop in coronavirus incidence, resulting in the fifth consecutive quarter of growth. Trade, hotels, transportation, and communication (6.1 per cent), financial, real estate, and professional services (4.6 per cent), and public administration, defence, and other services (4.6 per cent) all contributed to service activity growth (16.8 per cent). Manufacturing production increased by 0.2 per cent, mining and quarrying by 8.8%, utilities by 3.7 per cent, construction by 2.8 per cent, and agricultural by 2.6 per cent. The economy grew 8.2 percent for the entire fiscal year 2021/22, compared to 9.2 percent growth expected in the initial advance projections.

Current GDP of India

For the current fiscal year ending March 2022, India’s gross domestic product (GDP) is expected to expand by 9.2 per cent to 147.5 lakh crore, according to the Minister of State for Finance Pankaj Chaudhary.  The Indian economy picked up speed from July to September, gradually returning to normalcy as coronavirus-related disruptions subsided in the aftermath of a disastrous second wave. The country’s gross domestic product (GDP) increased by 8.4% year on year in the second quarter, one of the quickest rates among major economies. According to preliminary predictions, India’s GDP would expand 9.2% in the current fiscal year, which ends in March 2022.

Conclusion

The NSO slightly increased the GDP growth rates for the first and second quarters of 2021-22, from 20.1 percent to 20.3 percent and 8.4 per cent to 8.5 per cent, respectively. However, the GDP is expected to grow by the end of March 2022.