Recovery gains strength: GDP grows 1.6% in Q4, shrinks 7.3% in FY21

The recovery in Q4 was nevertheless impressive in the sense that nominal GDP grew at 8.7 per cent

India’s economy grew 1.6 per cent in the fourth quarter of 2020-21, indicating that a recovery was well underway before the second wave of Covid-19 struck. For the full year (FY21), the country's gross domestic product (GDP) contracted 7.3 per cent. The growth in 2019-20 was 4 per cent.
 
Gross value added (GVA) grew 3.7 per cent in real terms in the March quarter, showing a sequential pick-up, as expected. For the full financial year, real GVA fell 6.2 per cent, slightly better than the earlier assessment of 6.5 per cent contraction. The improvement in GVA in Q4 came