Indian economy seems to have regained good part of its momentum, adjusting to the new normal, as per the data released by MOSPI today. However, the second wave may have, again, dented its prospects of making up for the losses in FY22. Much will depend on the speed of vaccination and how it improves the prospect of high-contact sectors. Here is a brief look at the GDP performance.
GDP (Gross Domestic Product) of Indian economy increased by 1.6% during the last quarter of the financial year 2020-21. For the entire year FY21, it has declined by 7.3%, better than most initial estimates. More promisingly, GVA (Gross Value Added) grew at much better 3.7% for the quarter and -6.2% for the full year. (GDP growing less than GVA means while economy may have done better, government’s net revenue, taxes minus subsidies, was lower). Full year GDP stands at Rs 135.1 lakh crore whereas GVA stands at Rs 124.5 lakh crore (constant prices, base 2011-12).
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