Explained: Reading GDP growth data | Explained News,The Indian Express
Newly released provisional estimates show GDP rose 8.7% in 2021-22. While aggregates show the economy has gone past pre-pandemic levels, the recovery has not been uniform across sections.
India’s gross domestic product (GDP) grew by 8.7% in 2021-22 (or FY22) according to the “provisional estimates” released by the Ministry of Statistics and Programme Implementation on Tuesday. This growth comes at the back of a 6.6% contraction in GDP during 2020-21 when the pandemic led to massive disruptions and widespread lockdowns. The GDP measures the value of all “final” goods and services— those that are bought by the final user— produced in a country in a given period (say a quarter or a year).
The data released also showed that the Gross Value Added (or GVA) — another measure of national income — grew by 8.1% in FY22. In FY21, GVA had contracted by 4.8%.
The key questions are: Has the recovery in FY22 been good enough to recover from the contraction of FY21? If so, have all sectors recovered? If the recovery isn’t “broad-based”, which sectors or sections remain behind where they were before Covid struck?
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While the GDP calculates national income by adding up all expenditures in the economy, the GVA calculates the national income from the supply side by looking at the value added in each sector of the economy.
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