Low base catapults India’s real GDP growth to 20.1% y/y in Q2 2021

India's real GDP was INR 32.4tn in the first quarter of FY2022. Despite a second wave of infections and regional lockdowns overhauling economic activity between April and June of 2021, the economy managed to grow at 20.1% y/y, mainly due to the low base from Q2 2020 when the real GDP had declined by 24.4% y/y to INR 27tn.

India's real GDP was INR 32.4tn in the first quarter of FY2022

In terms of gross value added (GVA), the agriculture, forestry, and fishing sector grew by 4.5% y/y in Q2 2021, while services rose 11.4% y/y.

India's real GDP was INR 32.4tn in the first quarter of FY2022

The low base impact for the industry has been the strongest, as it touched a growth of 46.1% y/y. However, economic growth is unlikely to gain sufficient traction over the coming quarters of FY2022, especially if there is a third wave of COVID-19.

Further data and analysis on India’s economy are available on the CEIC India Economy in a Snapshot – Q2 2021 report.