The government has pegged India’s GDP growth rate at 9.2% for the financial year 9.22 despite the economy taking a hit due to the Covid-19 pandemic, on account of the improved performance especially in farm, mining and manufacturing sectors.
The improvement in the economy comes over a GDP contraction of 7.3 per cent during 2020-21 due to the pandemic and resultant lockdown imposed to curb the spread of the deadly coronavirus.
This is however still lower than the 9.5% growth pegged by the Reserve Bank of India (RBI).
“Real GDP or GDP (gross domestic product) at Constant Prices (2011-12) in the year 2021-22 is estimated at Rs 147.54 lakh crore, as against the Provisional Estimate of GDP for the year 2020-21 of Rs 135.13 lakh crore, released on May 31, 2021. The growth in real GDP during 2021-22 is estimated at 9.2 per cent as compared to the contraction of 7.3 per cent in 2020-21,” as per the National Statistical Office (NSO) statement.
As per the estimates, GDP in actual terms in 2021-22 will surpass the pre-Covid level of Rs 145.69 lakh crore in 2019-20.
However, the growth estimate is said to be backed by the extremely favourable base effect as the GDP had contracted by a record 7.3 percent in 2020-21 on account of the COVID-19 pandemic which prompted a nationwide lockdown that severely dented economic activity and growth.
According to the statement, real GVA (gross value added) at Basic Prices is estimated at Rs 135.22 lakh crore in 2021-22, as against Rs 124.53 lakh crore in 2020-21, showing a growth of 8.6 per cent.
The growth is set to be led by the manufacturing sector which is expected to rise 12.5% against a contraction of 7.2 per cent a year ago.
The NSO estimates significant growth in mining and quarrying (14.3 per cent), and trade, hotels, transport, communication and services related to broadcasting (11.9 per cent). The agriculture sector is estimated to see a growth of 3.9 per cent in FY2021-22, higher than 3.6 per cent growth recorded in the previous financial year.