(Representational Image)  |  Photo Credit: PTI
- GVA growth in Q4 FY21 at 3.7% YoY
- GDP in Q4FY21 grew by 1.6% YoY
- GDP for FY21 contracted by 7.3% YoY
India’s Q4FY21 GDP growth is better than expected at 1.6% vs ET NOW POLL EST of 0.8%. FY21 GDP is better than expected at -7.3% vs CSO’s second revised estimate of -8%.
Both FY21 and Q4 GDP are better than the street expectations. GDP growth was back in positive in Q3FY21. In Q4FY21 1.6% GDP growth in the second quarter of positive growth vs 1% in Q3. Prior to the COVID-19 pandemic, India’s GDP growth for fiscal year 19-20 was at 4%.
GVA stands at 6.2% for FY21 signaled an improvement in activities as compared to 4.1% in the previous year. Q4 GVA stands at 3.7% as compared to 1% in the previous quarter signaling a positive uptick of economic activities and stronger momentum as compared to the last quarter.
“Change in GVA is more representative of what has happened in economy,” says CEA. Positive GVA growth for FY21 was seen in Agriculture 3.6% followed by electricity 1.9%.
Trade, hotel, transport continue to show stress sharpest decline with negative GVA growth at 18.2% for FY21. Furthermore, construction recorded a decline of 8.6% coupled with mining & quarrying 8.5% decline and manufacturing 7.2% decline as compared to last year.
Industry trends: Q4 Construction sector continued to be resilient, sector growth at 14.5% vs 0.7% YoY. The manufacturing sector continues to be on the recovery path.
Q4 manufacturing sector stood at 6.9% vs negative 4.2% YoY. Agriculture sector took a hit with Q4 farm sector growth at 3.1% vs 6.8% YoY.
The financial services sector grew at 5.4% compared to 6.7% in the previous quarter. For the full year, the sector contracted by 1.5%. Government spending needs to pick up to support the economy. FY21 Govt final consumption expenditure growth at 2.9% YoY.