Chief Economic Adviser KV Subramanian on Monday said the momentum of GDP growth has been affected by the second Covid-19 wave, but assured that its overall economic impact is unlikely to be very large. Indian economy grew 1.6 per cent in January-March quarter of financial year 2020-21, while full-year GDP shrunk by 7.3 per cent, the worst performance in the last 40 years.
The momentum of GDP growth has been affected by the second wave. Indian economy grew 1.6% in Quarter 4 the Financial year 2020-21; Full-year GDP contraction stands at 7.3%: Chief Economic Adviser K V Subramanian pic.twitter.com/xwFhiHYoDZANI (@ANI) May 31, 2021
Subramanian hoped that the year 2021-22 will be better than the year gone by. He said food grains production is expected to be at record levels in this year and coming year, given the normal monsoon that has been predicted by the Indian Meteorological Department. "This is reflected both in cereals (rice and wheat) and pulses. The demand in rural India has been resilient," he added.
He said MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) provided significant rural employment in 2020-2021. "There is a significantly lower level of demand for work in May, compared to the same period last year," he said.
He said eight core industries and index of industrial production, which shows performance by core industries, have shown recovery to pre-pandemic levels during FY21. The output of eight core industries grew 56.1 per cent year-on-year (YoY) in April on a low-base effect as industrial production was very low in the year-ago month because of a nationwide lockdown.
However, the industrial output declined 15.1 per cent as compared to March 2021 due to the emergence of the second wave of COVID-19 pandemic, with all eight industries registering a decline in output.
Subramanian said GST collections registered another record high in April. "Since September, GST collections have been doing very well compared to the previous year."
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