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The total monetary or market worth of all the completed services and goods produced within a nation’s boundaries during a specific period is known as the gross domestic product (GDP). It is a comprehensive scorecard of a nation’s economic well-being because it provides a broad assessment of all domestic production. Although GDP is frequently estimated annually, it is also occasionally calculated quarterly. For each fiscal quarter and yearly period, the government in the United States, for instance, produces an annualised GDP estimate. Each data in this report is presented in real terms, which means that it has been adjusted for price changes.
Key Takeaways
- India’s economy grew by 5.4% year over year in the fourth quarter of 2021
- The fifth quarter’s expansion was fueled by the holiday season’s boost to consumer demand, policy support, and a sharp decline in coronavirus incidence
- By industry, trade, hotels, transportation, and communication had rises of 6.1%; financial, real estate, and professional services saw increases of 4.6%; and public administration, defence, and other services saw increases of 16.8%
- Manufacturing production increased by 0.2%, mining and quarrying by 8.8%, utilities by 3.7%, construction by 2.8%, and agricultural by 2.6%.
- The economy grew 8.2% during the entire fiscal year 2021–2022, as opposed to the 9.2% growth predicted in the initial advance forecasts.
GDP Annual Growth Rate in India
Services are the most important and rapidly expanding sector of the Indian economy. More than 60% of GDP comprises trade, lodging, transportation, and communication; financial, insurance, real estate, and commercial services; and community, social, and personal services. Although they only account for about 12% of total output, agriculture, forestry, and fisheries employ more than 50% of all workers. Construction makes up 8% of GDP, manufacturing contributes 15%, and mining, quarrying, power, gas, and water supply make up the final 5%.
About India's Q1 GDP Growth of This Fiscal Year
The Indian economy grew quickly in a year, aided by a beneficial base effect, strong growth in agriculture, services, construction, and personal consumption, and a pick-up in contact-intensive industries after the easing of Covid-19 restraints. The National Statistical Office (NSO) reported that the country’s GDP increased by an annual 13.5% in the April–June quarter of the current fiscal year, which was greater than the quarterly increase of 4.1% but lower than the quarterly increase of 20.1% seen in the first quarter of 2021–2022.
The Reserve Bank of India had predicted 16.2% growth for the first quarter of 2022–23; therefore, the 13.5% growth was less than expected.
According to economists, government capital spending on infrastructure steadily improved in June. Estimates indicated that GDP grew by 3.8% in the first quarter of fiscal 2020 compared to the pre-pandemic era. While the services sector increased 17.6% in June, the farm sector only experienced a solid 4.5% gain. Personal consumption increased by 25.9%.
Additionally, gross fixed capital formation remained strong, underscoring an increase in domestic investments. In the June quarter, manufacturing sector growth was 4.8% as opposed to 49% in the same quarter last year. The manufacturing, mining, and electricity sectors all showed flaws and fell short of economists’ predictions.
Growth Rates Across the Countries
According to TV Somanathan, the finance secretary, the figures support an annual GDP growth rate of 7 to 7.5%. “Private consumption and gross fixed capital formation, two metrics used to measure economic investment, showed very robust growth in the first quarter. The rise of other high-frequency data is also encouraging, “Ajay Seth, the secretary for economic affairs, added.
Additionally, he claimed that the base effect was in operation for contact-heavy industries like travel and tourism. Manufacturing activity had also increased following the 2020 lockdown and had not taken much of an impact during the Delta wave. At this point, India’s first-quarter GDP growth is significantly higher than that of other major nations.
China’s first quarter GDP growth was 4.8% despite the economy facing numerous strains and setbacks in several important sectors, including real estate. Despite the global slowdown, India is predicted to have the fastest expanding major economy.
Data From the Government on India's Q1 GDP:
According to a statement from the Ministry of Statistics & Programme Implementation, Real Gross Domestic Product (GDP) at Constant (2011–12) Prices is predicted to reach a level of Rs 36.85 lakh crore in Q1 2022–23, up from Rs 32.46 lakh crore in Q1 2021–22, showing a growth of 13.5% as opposed to 20.1% in Q1 2021–22. Due to the base effect, many analysts predicted that the Indian economy would grow at a double-digit rate.
Due to the state-wide lockdown implemented to stop the spread of the Covid-19 epidemic, India’s gross domestic product (GDP) shrank by 24.4% in the financial year 2020–21, although it increased by 20.1% last year.
Because of the first pandemic wave, the GDP shrank by 23.9% in the June 2020 quarter. According to the RBI, the Indian economy is expected to expand by 7.2% this fiscal year. In the first quarter of the current fiscal year, India’s GDP is predicted to grow by 16.2%, then by 6.2% in the second quarter, 4.1% in the third quarter, and 4% in the fourth.
