New Delhi: Former Union Finance Minister P Chidambaram snubbed the GDP data stating that ‘growth’ is on a low, actually negative, base of (-) 24.4% in Q1 of 2020-21. The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation stated in its release the Gross Domestic Product for the April-June quarter of the financial year witnessed an uptick of 20.1 %. The statement also observed that restrictions imposed in the wake of Covid-19 pandemic have an effect on the quarterly GDP estimates.
However, Chidambaram in his tweets mentioned that 'We are still below the GDP level in the first quarter of the pre-pandemic year 2019-20. We have still some distance to go before the economy can be said to have achieved the pre-pandemic level.' We have not fully recovered from the decline last year, he stated.
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Before we ‘celebrate’ the 20.1% GDP growth in Q1 (April-June) of 2021-22, please pause to consider the following.
— P. Chidambaram (@PChidambaram_IN) August 31, 2021 " class="align-text-top noRightClick twitterSection" data="
This ‘growth’ is on a low, actually negative, base of (-) 24.4% in Q1 of 2020-21.
">Before we ‘celebrate’ the 20.1% GDP growth in Q1 (April-June) of 2021-22, please pause to consider the following.
— P. Chidambaram (@PChidambaram_IN) August 31, 2021
This ‘growth’ is on a low, actually negative, base of (-) 24.4% in Q1 of 2020-21.
Before we ‘celebrate’ the 20.1% GDP growth in Q1 (April-June) of 2021-22, please pause to consider the following.
This ‘growth’ is on a low, actually negative, base of (-) 24.4% in Q1 of 2020-21.
According to NSO's statement, the GDP at constant prices is estimated at Rs 32.38 lakh crore while in the previous quarter it was Rs 26.95 lakh crore. The gross value added (GVA) burgeoned by 18.8 per cent. The GVA at constant prices is estimated at Rs 30.48 lakh crore, as against Rs 25.66 lakh crore in the previous quarter. At current prices, the GDP showed a growth of 31.7 per cent as compared to 22.3 per cent in the previous quarter, that is Rs 51.23 lakh crore and Rs 38.89 lakh crore respectively. Meanwhile, at Current Prices, GVA witnessed a growth of 26.5 per cent.
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The press release stated that the estimates were based on data sources from various ministries /departments/private agencies. For agriculture and allied activities, the first-quarter estimates are based on agricultural production targets for 2021-22 obtained from the department of agriculture, cooperation and farmers’ welfare. Further, monthly accounts of Union and State governments expenditure maintained by Controller General of Accounts (CGA) and Comptroller and Auditor General of India (CAG) respectively for the period April-June 2021 have been used.
Performance of key sectors like transport including Railways, road, air and water transport etc., Communication, Banking and Insurance during this period have also contributed to the GDP value. Data received from the Bombay Stock Exchange and National Stock Exchange were also used along with Goods and Service Tax data, e-way bills, NSO's press release observed.
