India’s GDP grew by 20.1 percent during the first quarter of this financial year, as against a 24.4 percent contraction seen during the same period last financial year.
This quarterly growth is the fastest that is witnessed by the country since such data began to be released in mid of 1990s.
One of the major reasons for this exceptional jump in Indian economy is the low base effect which means the base year or month with which the figure is being compared.
For annual or quarterly GDP data of the country, comparison is always made with the growth over last year's GDP or same quarter last year.
India’s economy at constant prices (2011-12) in the first quarter stood at rupees 32.38 lakh crore, however still lower than the rupees 35.66 lakh crore seen in the first quarter of FY 2019-20, signalling that India is yet to come out from the Covid-19 induced decline.
The gross value added (GVA) was higher than the previous year that is 68.3 percent of the construction sector and the services sector grew at 3.7 percent from the year-ago period.
While, in the previous quarter, India’s economy had grown by 1.6 percent and the full financial year 2020-21, India’s economy contracted by 7.3 percent.