GDP expands at 1.6 percent in Q4, but shrinks by 7.3 percent in FY21

The Indian economy expanded by 1.6 percent in the January-March quarter of 2020-21, signaling a rapid comeback after two quarters of contraction due to the impact of the stringent lockdown. However, for the full year, it shrank by 7.3 percent, compared to an earlier forecast of 8%. The National Statistical Office (NSO) released data on Monday showing that the recovery gained traction in the fourth quarter of 2020-21, just before the second wave impacted the economy. The unlocking of economic activity, according to economists, was the cause of the March quarter's growth revival. As a result of the Covid-induced shutdown, the GDP shrank by 7.3 percent, the most in over four decades.