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.
- In the corresponding quarter a year ago, the 24.4% contraction was recorded.
- However, economic activity still remained well below the pre-pandemic levels, due to the second wave of COVID-19.
- 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.