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India’s GDP Contracts by 7.3% in FY21, Rises 1.6% in Q4: NSO

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India’s GDP growsThe National Statistical Office (NSO), Ministry of Statistics and Programme Implementation, estimated India’s Gross Domestic Product (GDP) growth for Q4 FY21 at 1.6 percent with a contraction of 7.3(-7.3) percent for FY21(Earlier projection 8(-8) percent) against 4 percent expansion in FY20.

  • This is the 1st full-year contraction in the Indian economy in the last 4 decades since 1979-80 when GDP had shrunk by 5.2 percent.
  • GDP at constant (2011-12) prices: In Q4 FY21 it is estimated at Rs 38.96 trillion as against Rs 38.33 trillion in Q4 of FY20 (a growth of 1.6 percent).
  • GDP at Current Prices: In FY21 it is estimated to Rs 197.46 lakh crore, as against the First Revised Estimates of Rs 203.51 lakh crore in FY20, a change of -3.0 percent as compared to 7.8 percent in 2019-20.

Gross Value Added(GVA) at Basic Prices:

i.In FY21, India’s GVA in economy reduced by 6.2 percent, compared to a 4.1 percent rise in FY20. GVA in Q4 recorded a growth of 3.7 percent, compared to 1 percent in Q3. GVA contracted 22.4 percent and 7.3 percent in Q1 and Q2 of FY21.

ii.Industry-wise GVA:

Industry GVA growth % in FY21
Agriculture, Forestry and Fishing 3.6% (Positive growth)
Electricity, Gas, Water Supply and other Utility Services 1.9% (Positive growth)
Trade, Hotels, Transport, Communication and Broadcasting-related services – 18.2 % (sharpest decline)
Manufacturing -7.2 %
Construction -8.6 %
Mining and quarrying -8.5%

About Gross Domestic Product (GDP):

i.GDP is the final monetary value of the goods and services produced within the country during a financial year, it is derived as the sum of the GVA at basic prices, plus all taxes on products, less all subsidies on products.

ii.The total tax revenue used for GDP compilation includes Non-GST Revenue and GST Revenue.

i.e. GDP = Sum of GVA at basic prices + product taxes – product subsidies

About Gross Value Added(GVA):

GVA is the measure of the total value of goods and services produced in the country. It provides the value of output minus the value of intermediate consumption.

i.e. GVA = GDP + subsidies on products – taxes on products

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In accordance with the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) second advance estimate, the growth of India’s Gross Domestic Product (GDP) is estimated at 0.4% in Q3FY21 (October-December, 2020) stating India’s exit from technical recession.

About Ministry of Statistics and Programme Implementation:
Minister of State (MoS), Independent Charge – Rao Inderjit Singh