P Chidambaram has reacted to the news of India recording a GDP growth of
20.1% in April-June 2021 vis-a-vis the corresponding period in the
Senior Congress leader and former Finance Minister P Chidambaram has reacted
to the news of India recording a GDP growth of 20.1 percent in the April-June
2021 quarter compared to the first quarter of the 2020-21 financial year.
Taking to Twitter, Chidambaram highlighted that despite the tremendous growth
rate of 20.1 percent, it remains a negative growth compared to the first
quarter of 2020-21, which registered a contraction of 24.4 percent. He opined
that the country has not fully recovered from the decline reported in the
previous year while adding that India’s GDP remains below the levels in the
first quarter of the pre-pandemic year, i.e. 2019-20.
India Registers Massive Growth In Q1 2021-22
Before we ‘celebrate’ the 20.1% GDP growth in Q1 (April-June) of 2021-22, please pause to consider the following.
This ‘growth’ is on a low, actually negative, base of (-) 24.4% in Q1 of 2020-21.
— P. Chidambaram (@PChidambaram_IN) August 31, 2021
The Ministry of Statistics and Programme Implementation (MoSPI) announced
growth in India’s GDP by 20.1 percent in the quarter of April-June 2021. The
substantial recovery can be attributed to the Centre and state government’s
localized and calibrated lockdowns to control the surge of COVID-19 cases
during the second wave, as against the complete lockdown imposed during the
first wave in 2020.
Moreover, Chief Economic Advisor KV Subramanian has stated that India is
poised for stronger growth from structural reforms, Government Capex push and
rapid inoculation against COVID-19.
According to MoSPI, GDP at Constant (2011-12) Prices in Q1 of 2021-22 is
estimated at ₹ 32.38 lakh crore, as against ₹ 26.95 lakh crore in Q1 of
2020-21, showing a growth of 20.1 percent as compared to a contraction of 24.4
percent in Q1 2020-21.
Moreover, GDP at Current Prices in the year Q1 2021-22 is estimated at ₹ 51.23
lakh crore, as against ₹ 38.89 lakh crore in Q1 2020-21, showing a growth of
31.7 percent as compared to a contraction of 22.3 percent in Q1 2020-21.
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. MoSPI
stated that the latest information on the website of the Controller General of
Accounts (CGA) and Comptroller and Auditor General of India (CAG) was used for
estimating taxes on products and subsidies on products at Current Prices, for
ascertaining the GDP growth for the first quarter of 2021-22.