Economy grows 20.1% in Q1

  • IASbaba
  • September 1, 2021
  • 0
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Economy grows 20.1% in Q1

Part of: GS Prelims and Mains GS-III Economy 

Context: India’s Gross Domestic Product (GDP) grew by 20.1% in the first quarter of 2021-22.

Key takeaways

  • Gross Value Added (GVA) in the economy (April to June) rose 18.8%, as per the National Statistical Office (NSO), from a 22.2% dip in the first quarter of 2020-21.
  • Electricity, gas, water supply and other utility services was the only sector along with agriculture, forestry and fishing, to recover beyond the pre-pandemic levels of 2019-20.

What is the difference between GDP and GVA?

  • Gross value added (GVA) is defined as the value of output less (minus) the value of intermediate consumption. 
  • It is used to measure the output or contribution of a particular sector. 
  • When such GVAs from all sectors (∑ GVA) are added together along with adding taxes and reducing subsidies,  we can get the GDP (at market price). 
  • GVA thus shows the production contribution of a particular sector and GDP shows the production contribution of  the  economy.

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