India’s Gross Domestic Product (GDP) has revived by 1.6%in the fourth (March) quarter of Financial Year 2021 however; it has also showna negative trend as it contracted by 7.3% in the same year.
The latest figures of the GDP have been released by theNational Statistics Office (NSO) on Monday stating that the improvement in the final quarter of the FY21 has occurred due to the staggered relaxation in thecoronavirus induced lockdown, festive season, GST collections, employment anddemand.
It is pertinent to mention here that it is the second quarterin which India’s GDP grew consistently after being hit by the first wave of thepandemic since March 2020. In the previous quarter i.e. October to December,GDP projected growth of 0.4% as it exited the recession period occurred due tolockdown.
Moreover, the NSO’s data reveals that India’s annual GDPfor FY21 has also revised as it shows 7.3% contraction, less than it is earlierestimated at -8.0%.
However, according to economists, the GDP numbers of Marchwould have a few implications on the current economic growth process as thesecond wave of contagious infection has shaken the momentum again.
Earlier, the economists stated that the Indian economy wouldobserve a double-digit growth in FY22, but the lockdown in many states of thenation has pushed it towards the downward trend. It is being believed by theexperts that the first quarter of FY22 would be adversely affected by the ongoingpandemic situation.
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