Summary:

The Indian economy expanded 1.6% year-on-year in Q1 2021, accelerating from an upwardly revised 0.5% growth in Q4 and beating market forecasts of 1%. It was the 2nd straight quarter of growth since the country exit a pandemic-induced recession. On the expenditure side, both private (2.7% vs -2.8% in Q4) and public (28.3% vs -1%) spending rebounded while gross fixed capital formation rose faster (10.9% vs 2.6%). Meantime, net trade contributed negatively to growth as exports climbed 8.8% (vs -3.5% in Q4) but imports jumped at a faster 12.3% (vs -5% in Q4). On the production side, output rose for manufacturing (6.9%); construction (14.5%) and utilities (9.1%). In the last fiscal year that ended on March 31st, the economy contracted a record 7.3%, less than earlier estimates of an 8% drop. Asia’s 3rd largest economy is expected to grow at the world’s fastest rate this year despite projections for the current quarter being more pessimistic amid the 2nd flare-up of infections in April. [source: Ministry of Statistics and Programme Implementation (MOSPI)]

Forecast:

GDP Annual Growth Rate in India is expected to be 10.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate GDP Annual Growth Rate in India to stand at 6.60 in 12 months time. In the long-term, the India GDP Annual Growth Rate is projected to trend around 7.00 percent in 2022 and 6.50 percent in 2023, according to our econometric models.

The most important and the fastest growing sector of Indian economy are services. Trade, hotels, transport and communication; financing, insurance, real estate and business services and community, social and personal services account for more than 60 percent of GDP. Agriculture, forestry and fishing constitute around 12 percent of the output, but employs more than 50 percent of the labor force. Manufacturing accounts for 15 percent of GDP, construction for another 8 percent and mining, quarrying, electricity, gas and water supply for the remaining 5 percent.

Stats:

GDP Annual Growth Rate in India averaged 5.67 percent from 1951 until 2021, reaching an all time high of 11.40 percent in the first quarter of 2010 and a record low of -24.40 percent in the second quarter of 2020. India GDP Annual Growth Rate - data, historical chart, forecasts and calendar of releases - was last updated on July of 2021.