Uttar Pradesh GSDP grows 19.6% in first quarter of 2021-22

The increase in Uttar Pradesh GSDP indicates that the Covid affected economy is recovering in the state but it is yet to reach the pre-pandemic level

Published on: Nov 12, 2021, 22:45:44 IST

By Umesh Raghuvanshi, Lucknow

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Uttar Pradesh’s estimates for the Gross State Domestic Product (GSDP) show an increase of 19.6% in the first quarter of 2021-22 (April to June 2021) as against the contraction of 22.5% in the corresponding period in 2020-21, according to the State Planning Institute (Economics and Statistics Division), Uttar Pradesh.

There was contraction of 22.5% in the Uttar Pradesh GSDP in the corresponding period in 2020-21. (REPRESENTATIVE IMAGE )

The GSDP (at constant prices) in the first quarter of 2021-22 is estimated to be ₹2,30,673.02 crore vis-à-vis ₹ 1,92,896.17 crore in the corresponding period in 2020-21. GSDP in the first quarter of 2019-2020 was ₹ 2,57,639.79 crore.

The Uttar Pradesh GSDP (at current prices) is estimated to be ₹ 4,05,835 crore in 2021-22.

Uttar Pradesh GSDP shrank by nearly 5.9% in 2020-21 following the adverse impact of Covid on the state economy. The estimated increase of 19.6% in the GSDP, therefore, indicates that the Covid-affected economy is recovering in the state but it is yet to reach the pre-pandemic level.

“Yes, these estimates show that the state economy has made a sharp recovery in Q1 of 2021-22 after the whopping contraction of 26.2% in GSDP in Q1 and 5.9% in the whole year of FY21. But these estimates have to be seen in the right perspective. Firstly, the high growth of 19.6% in the GSDP is due to “low base effect” as this growth comes over a huge contraction of GSDP in Q1 of 2020-21. Secondly, the loss in GSDP caused by Covid-19 is yet to be fully made up as the GSDP ( ₹ 2,30,673.02 cr) in Q1 of FY 22 is lower by 13.3% compared to the GSDP ( ₹ 2,61,265.50 crore) in the corresponding quarter of pre- pandemic year 2019-20,” said Professor Yashvir Tyagi, former head of the department of economics, Lucknow University.

Minister for finance Suresh Khanna, while briefing media persons recently, claimed a consistent increase in the state’s revenue collections and said the UP economy was coming back to near normal. The Gross State Value Added estimates for the period show the highest growth in the secondary sector (40.9%) followed by tertiary (16.3%) and the primary (5.8%) sectors in the first quarter of 2021-22.

In 2020-21, the contraction was 4.5% in the primary, 42.9% in the secondary and 22.8% in the tertiary sectors.

ABOUT THE AUTHOR
Umesh Raghuvanshi
Umesh Raghuvanshi is an award-winning journalist with nearly four decades of demonstrated experience in the profession. He is the author of Ayodhya: The Gods Are Liberated. He is skilled in storytelling and newswriting, and writes on politics, governance, legislature, finance, environment, and social issues. He is based in Lucknow, is well-travelled, and has covered several national and international events, as well as all assembly and parliament elections in Uttar Pradesh since 1984. He has been a visiting scholar at the Graduate School of Journalism, University of California, Berkeley, USA, and a Metcalf Fellow at the Metcalf Institute of Marine and Environmental Reporting, University of Rhode Island, USA. He is a science graduate from DBS College, Dehradun, and holds an MA in Political Science from DAV (PG) College, Dehradun. He won the KC Kulish International Merit Award for excellence in journalism (2015) and received it in New Delhi in 2017. He also won a competition organised by the United Nations Environment Programme DTIE OzonAction Programme in 2009 that assessed coverage of the interlinkages between ozone and climate change. He was awarded in Beijing, China, in 2010. He started his career with a Dehradun-based English daily in the early 1980s and later worked with The Pioneer too.Read More