The GDP number for full year FY21 has come in better than street estimates at -7.3%. Gross Value Added (GVA) is at 3.7% for the fourth quarter. So, the economy seems to be in a better shape in comparison to what street estimated. For the Q4FY21 GDP growth has been at 1.6% .
In fact the GDP number suggest there has been decent growth in sectors including manufacturing (6.9%), agriculture (3.1%) and construction (14.5%) among others in the last quarter ended March 2021.
The Covid ravaged year 2020-21 witnessed the steepest contraction ever since the calculation of national accounts began in the early 1950s. Also, this year's contraction was the first since 1980-81.
Previous quarter GDP figures of FY21
In the third quarter ended December, India came out of technical recession and registered a growth of 0.4 percent, after having faced de-growth for earlier 2 quarters on account of Covid 19 led fall-out.
The National Statistics Office (NSO) in its second advance estimate of national income released in February, there was forecasted a contraction of 8 percent in FY21.
As per rating agency ICRA's estimates, for the full year the economy shall shrink by 7.3 percent, while for the last quarter, the GDP will grow by 2 percent.
On the GDP data, Chief Economic Advisor Krishnamurthy Subramanian said, "After the quarter one numbers were released, we had said things will get better from here and had predicted growth. Heartening to know those projections hahave held. Annual numbers signify a revival in demand".