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Business EYE SEPTEMBER 03, 2021 | The Indian Eye 34

india’s gdP growth of 20% in the first quarter

of FY22 may not be good enough

Unemployment in August rose to 8.32% from a four-month low of 6.95% in July, data

from private research firm Centre for Monitoring Indian Economy (CMIE) shows

Our Bureau
New Delhi

ndia’s gross domestic prod-
uct (GDP) grew at a record
Ipace of 20.1 per cent in the
first quarter of FY22, as per of-
ficial data released on Tuesday.
The record growth in the April-
June quarter comes on the back
of a weak base and a sharp rise
in consumption demand. “GDP
at Constant (2011-12) Prices in
Q1 of 2021-22 is estimated at Rs
32.38 lakh crore, as against Rs
26.95 lakh crore in Q1 of 2020-
21, showing a growth of 20.1 per
cent as compared to a contrac-
tion of 24.4 per cent in Q1 2020-
21,” said the statement released
by Ministry of Statistics and Pro-
gramme Implementation. The GDP growth percentage is in line with what economists predicted earlier
The economy grew 20.1 per
cent in the first quarter of this
financial year in comparison The first quarter’s high Aditi Nayar, Chief Economist, ing Indian Economy (CMIE)
to the same period a year ago growth rate, however, has come ICRA, said, “The sharp YoY ex- showed on Wednesday.
when the economy contracted despite a brutal second wave of pansion in Q1 FY2022 is analyt- A separate survey of factory
24.4 per cent. The GDP growth the pandemic which peaked in ically misleading.” managers by IHS Markit point-
percentage is in line with what April-May. In fact, data related Amongst sectors, manu- ed to companies pausing hiring
economists predicted earlier. to certain high frequency indica- facturing and construction im- efforts amid a softer growth in
Meanwhile, the Gross Val- tors such as power generation, parted a significant push to the sales during the month. “There
ue Added (GVA) has grown at fuel consumption and railway economy in April-June, growing is some hesitancy in the growth
18.8 per cent in the first quarter. freight for April-May indicated 49.63% and 68.3% respectively, and that’s the reason we see this
“Quarterly GVA at Basic Price that rebound has been faster over April-June 2020. Services, fatigue in employment num-
at Constant (2011-12) Prices for after Covid 2.0 than Covid 1.0, especially contact-intensive sec- bers,” CMIE managing direc-
Q1 of 2021-22 is estimated at Rs said Sunil Kumar Sinha, Princi- tors, however, continued to lag. tor Mahesh Vyas said by phone.
30.48 lakh crore, as against Rs pal Economist, India Ratings. In terms of expenditure, Private “We are still recovering from a
25.66 lakh crore in Q1 of 2020- Data released by the Na- Final Consumption Expendi- sharp fall in employment.”
21, showing a growth of 18.8 per tional Statistical Office Tuesday, ture, a measure of consumer About a million jobs were
cent,” the statement added. however, shows the economy spending, grew 19.34%, and lost last month, according to
This is the fastest quarterly continues to limp towards recov- Gross Fixed Capital Formation, CMIE data, which is based on
expansion of GDP since official ery. The GDP in absolute terms a measure of private investment, surveys, and is widely accepted
growth data was stored from the at Rs 32.38 lakh crore (constant jumped 55.26 per cent. in the absence of timely govern-
mid-1990s. In comparison, the prices) in the first quarter is still Meanwhile, India’s jobless ment data. The job losses were
GDP growth was 1.6 per cent 9.2% lower than the GDP in rate rose last month due to a relatively low when compared
in the fourth quarter of FY21. the same period during the pre- hit to hiring activity from the with April when more than sev-
However, it must be noted that Covid year 2019-20. Covid-19 pandemic. Unemploy- en million jobs were lost amid
the record GDP growth is a re- Pointing to this and the se- ment in August rose to 8.32% the second virus wave.
sult of the low base. quential slowdown of 16.9% from a four-month low of 6.95% India typically adds more
The GDP had contracted over the GDP of Rs 38.96 lakh in July, data from private re- than one million people to its
24.4 per cent in April-June 2020. crore in January-March 2021, search firm Centre for Monitor- work force every month.

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