Page 34 - NIS 01-15 JAN 2022 English

Economy Growing GDP

Among the 8 core sectors the rate of 5 is positive while 3 is improving

ECONOMY POST POSITIVE 20.1% Second quarter Crore Rs. 2019-20 2021-22
407641+
Agriculture
378602
GROWTH FOR THE FOURTH
CONSECUTIVE QUARTER 8.4% Mining 64905 70022+
564742
Manufacturing
586775+
0.4% 1.6% Utility Services 77469 86330+
-7.3% CONSTRUCTION 241188 240528-
Trade, Hotel, Transport 638065 579113-
Finance, Real Estate 862867 845468-
July-September October-December Jan-March April-June July-September Public Service, Defense 443615 472861+
(2020-21) (2020-21) (2020-21) (2021-22) (2021-22)
& Others

ECONOMIC TURNAROUND

The growth rate recorded between July and 2020-21, the construction sector was most
September in the second quarter of 2021-22 is affected. Its size had shrunk to Rs 1.30 lakh crore
better than expected. This is a sign of the Indian with a 50.3% decline. Now after a year and a half,
economy turning around from the Covid fallout this sector has registered robust growth and it is
even as the size of the economy increases in only Rs 660 crore behind the pre-covid level in the
comparison to the pre-Covid period. The size of July-September quarter.
the economy was 35.61 lakh crore in 2019 but Most importantly, India's growth rate has been
now it has become 35.71 lakh crores. the fastest in the world. The major countries of
The highest growth rate of 15.4% was recorded in the world, America (4.9%), China (4.9%), Japan
the mining sector. The manufacturing sector rose (1.4%), etc. have had lower growth rates in the
by 5.5%, construction activity up by 7.5% and The last quarter. India is followed by Turkey (6.9%) in
agriculture sector grew by 4.5%. second place.
After the lockdown in the first quarter of

Growth rate higher than the
THE PROCESS OF FORMALIZATION OF THE
UNORGANIZED SECTOR ACCELERATED estimates of RBI and SBI
Prime Minister Narendra Modi has promoted
digitization in the country. This has accelerated
the process of formalization of the informal sector
i.e. unorganized sector. Today, the share of the
informal sector in the Indian economy has come
down to 15 to 20 per cent in 2020-21, from 52.4 The Reserve Bank of India (RBI) had
per cent in 2017-18. According to a study by SBI forecasted a 7.9% growth rate. At the
Research, the effort to formalize the economy same time, the country's largest bank
started in 2011-12, but this effort has now gained
momentum. The study showed that since 2016 State Bank of India had estimated
the acceleration of digitization and the emergence that the GDP growth rate could be
of the gig economy has led to a rapid increase in 8.1%. But the GDP growth rate of
the share of the formal sector. The effect of this is 8.4% in the second quarter has been
now visible on the economy. well ahead of these estimates.

32 New India Samachar January 1-15, 2022