GDP data for first quarter 2021-22 reaffirms imminent V-shaped recovery, says Chief Economic Advisor

New Delhi [India], August 31 : GDP data for the first quarter 2021-22 reaffirms the government prediction of an imminent V-shaped recovery, said Chief Economic Advisor (CEA), Krishnamurthy Subramanian, on Tuesday.
Subramanian also mentioned that the Gross nonperforming assets (NPAs) declined from 11.2 per cent in March (2018) to 7.4 per cent in March (2021).
While briefing the media here today, the CEA said, "Gross NPA (nonperforming asset) declined from 11.2 per cent in March (2018) to 7.4 per cent in March (2021). GDP data for the first quarter 2021-22 reaffirms the government prediction of an imminent V-shaped recovery that we had made last year this time."
He further stated that there has been a steady recovery in petroleum consumption and auto sales, reaching pre-pandemic levels.
Subramanian said that despite supply-side restrictions due to the COVID-19 pandemic, inflation was much lower than during the global financial crisis due to supply-side measures.
"External sector providing a stable cushion. Forex reserves continue to grow. Despite supply-side restrictions due to pandemic, inflation was much lower than during GFC (global financial crisis) because of supply-side measures," added the Chief Economic Advisor.
India's GDP grew by 20.1 per cent in the April to June quarter (Q1 FY22) as compared to a contraction of 24.4 per cent in Q1 FY21, government data released on Tuesday showed.
A better-than-expected manufacturing performance, a milder hit to services and a rebound in consumer spending helped the Q1 growth in spite of the second wave of Covid-19 cases.
The period from April to June had less stringent lockdown norms than in the same period of last year with demand staying resilient.
Besides, steady growth in exports, as well as the robust performance of the agricultural sector, is expected to give a push to GDP growth in the current fiscal year.
GDP is derived as the sum of the gross value added (GVA) at basic prices plus all taxes on products less all subsidies on products. The total tax revenue used for GDP compilation includes non-GST revenue and GST revenue.
"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, marking a growth of 20.1 per cent as compared to a contraction of 24.4 per cent in Q1 2020-21," said the National Statistical Office (NSO).
Quarterly GVA at basic price at constant (2011-12) prices for Q1 of 2021-22 is estimated at Rs 30.48 lakh crore as against Rs 25.66 lakh crore in Q1 of 2020-21, showing a growth of 18.8 per cent.
GDP at current prices in the year Q1 2021-22 is estimated at Rs 51.23 lakh crore as against Rs 38.89 lakh crore in Q1 2020-21, showing a growth of 31.7 per cent as compared to a contraction of 22.3 per cent in Q1 2020-21.
GVA at basic price at current prices in Q1 2021-22 is estimated at Rs 46.2 lakh crore as against Rs 36.53 lakh crore in Q1 2020-21, showing a growth of 26.5 per cent.