India’s March quarter GDP at 1.6%, FY21 growth revised to -7.3%

India's GDP growth has improved in the fourth quarter of FY21 after growing 0.4 per cent in the December quarter. The GDP in the March quarter has grown 1.6 per cent while the FY21 full-year GDP growth has been revised to -7.3 per cent from -8 per cent.

India’s gross domestic product (GDP) grew 1.6 per cent in the fourth quarter of 2021, marking two quarters of consecutive growth after it exited a rare recession. The Q4FY21 GDP growth is largely in line with estimates released earlier by multiple ratings agencies earlier. The improvement in GDP also suggests that the country’s economy recovered rapidly after registering negative growth for the first two quarters of FY21. It may be noted that the Indian economy started recovering quickly from the third quarter of FY21 (December quarter) as restrictions were eased; the festive sales also contributed to the 0.4 per cent growth in the third quarter of FY21 after contracting 23.9 per cent in the first quarter and 7.5 per cent in the second quarter.