India’s GDP grew 0.4% in Q3 of FY21, helping the economy out of a technical recession after two consecutive quarters of degrowth. The economy witnessed a GDP contraction of 24% and 7.5% in Q1 and Q2 of FY21, respectively.
GDP at constant (2011-12) prices in Q3 of 2020-21 is estimated at Rs 36.22 lakh crore, as against Rs 36.08 lakh crore in Q3 of 2019-20. The growth in GDP during 2020-21 is estimated at (-)8% as compared to 4% in 2019-20, as per the press release. FY21 GVA growth is seen at (-)6.5%.
Today’s GDP numbers, along with January business activity, show indications of a recovery despite an uptick of Covid-19 cases in the past few weeks. Services activity rose for the fourth month in January, while exports and factory activity also continued to expand.
RBI sees India growing at 10.5% during FY22, while the IMF expects India to grow at 11.5%. The Economic Survey forecasted GDP to rise 11% during the same period.
