India’s gross domestic product (GDP) registered an impressive growth shooting up to 20.1 percent in April-June, the first quarter of the current financial year 2021-22. India was having a negative growth during the same period last year. It was at -24.4 percent. The second quarter of the last financial year also registered a negative growth of -7.4 percent. It was on account of lockdown because of the corona pandemic. The economy registered negative growth in the first two quarters of the last financial year, 2020-21. There has been a recovery since the third quarter of last year. The third quarter of 2020-21 showed an increase of just 0.5 percent and the fourth quarter registered a growth of a nominal 1.6 percent.
Considering the nominal increase in the growth in the third and fourth quarters of last financial year, the leap to 20.1 percent in the first quarter of this year is very impressive and encouraging. The growth is in keeping with the predictions of financial bodies. The RBI predicted the first quarter growth to be at 18.5 percent although it projected the growth of 26.2 percent earlier which it had revised later. There has been improved economic activity in the country after lifting the lockout and the beginning of festival season. A majority of financial analysts said the GDP growth in the first quarter of this year would be between 18-20 percent. They said India is in a position to register fastest growth of GDP this year. The Indian economy has withstood two Covid-19 waves and now is on a rebound.