India GDP Data: Manufacturing sector driving the growth, takes front seat in Q4 FY21
India GDP Growth Rate: India's economy grew by 1.6 per cent in the fourth quarter of 2020-21, restricting the full-year contraction to 7.3 per cent, official data showed on Monday.
The fourth-quarter growth was better than the 0.5 per cent expansion in the previous October-December quarter of 2020-21.
Manufacturing sector recovers
India's manufacturing sector recovered during the Q4 FY21, recording a growth of 6.9 per cent as compared to a contraction of 4.2 per cent during the same period last year, as gross domestic product (GDP) data released by the National Statistical Office (NSO).
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Manufacturing growth trajectory over FY21
After dipping by 36 per cent in the first quarter of FY21, mainly due to Covid-led lockdown, manufacturing gross value added (GVA) came on the recovery track in the second quarter, contracting by only 1.5 percent and growing by 1.7 percent in the third quarter of 2020-21.
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Manufacturing sector slumps on YoY basis
On an annual basis though, manufacturing contracted 7.2 percent compared to 2.4 percent during the financial year 2019-20. The manufacturing sector constitutes 77.63 percent of the Index of Industrial Production (IIP).
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PMI-Manufacturing data on 7-month low
Similarly, according to the Purchasing Managers Index (PMI-Manufacturing) data released by HIS Markit in the first week of May, PMI for April saw a marginal increase to 55.5 after declining to a seven-month low in March at 55.4.
Photo Source: PTI