Context: India’s economy resurfaced to growth territory in the third quarter of fiscal year (FY) 2020-21, clocking a 0.4% rise in the gross domestic product (GDP), as per data from the National Statistical Office (NSO).

Details:

• GDP had shrunk in the first two quarters by 24.4% and 7.3% as per revised data, amid the COVID-19 pandemic and lockdowns, marking a technical recession.
• The NSO has also revised its advance national income estimates for FY21 to project an 8% decline in GDP, compared with the 4% growth seen in FY20. The NSO had earlier estimated a 7.7% shrinkage for FY21.
• The Finance Ministry termed the 0.4% real GDP growth in Q3 as a return to ‘the pre-pandemic times of positive growth rates’ and a reflection of a ‘further strengthening of V-shaped recovery that began in Q2’.
• India’s farm sector remained resilient, clocking a 3.9% growth in Gross Value Added (GVA).
• In Q3, manufacturing, construction and financial, real estate and professional services staged a return to growth for the first time in the year after two bad quarters.
• Services including trade, hotels, transport and communication remained in trouble, with GVA declining 7.7%, though it was better than the -47.6% and the -15.3% reading in Q1 and Q2.

Gross Domestic Product (GDP):

• Gross Domestic Product (GDP) is the monetary value of all finished goods and services made within a country during a specific period.
• GDP provides an economic snapshot of a country, used to estimate the size of an economy and growth rate.
• GDP can be calculated in three ways, using expenditures, production, or incomes. It can be adjusted for inflation and population to provide deeper insights.
• Though it has limitations, GDP is a key tool to guide policymakers, investors, and businesses in strategic decision making.

https://www.thehindu.com/todays-paper/tp-business/india-out-of-recession-gdp-grows-04/article33946279.ece

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