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10 Economic Survey 2021-22

Table 3: Annual Real growth in demand side of GDP and its components (per cent)
Components 2019-20 2020-21 2021-22 Recovery
(1st RE) (PE) (1st AE) over 2019-20
Total Consumption 5.9 -7.3 7.0 99.2

Government Consumption 7.9 2.9 7.6 110.7
Private Consumption 5.5 -9.1 6.9 97.1
Gross Fixed Capital Formation 5.4 -10.8 15.0 102.6

Exports -3.3 -4.7 16.5 111.1
Imports -0.8 -13.6 29.4 111.8

GDP 4.0 -7.3 9.2 101.3
Source: NSO
Note: RE - Revised Estimates, PE - Provisional Estimates, AE - Advance Estimates

Table 4: Share of Sectors in Nominal GDP (per cent)

Sectors 2019-20 2020-21 2021-22
(1st RE) (PE) (1st AE)

Total Consumption 71.7 71.1 69.7
Government Consumption 11.2 12.5 12.2

Private Consumption 60.5 58.6 57.5
Gross Fixed Capital Formation 28.8 27.1 29.6

Net Export -2.5 -0.5 -3.0
Exports 18.4 18.7 20.1
Imports 21.0 19.2 23.1

GDP 100.0 100.0 100.0
Source: NSO
Note: RE: Revised Estimates, PE: Provisional Estimates, AE: Advance Estimates

Consumption
1.12 Total consumption is estimated to have grown by 7.0 per cent in 2021-22 with government
consumption remaining the biggest contributor as in the previous year (Table 3). Government
consumption is estimated to grow by a strong 7.6 per cent surpassing pre-pandemic levels.
Private consumption is also estimated to have improved significantly to recover 97 per cent of
corresponding pre-pandemic output level. This is supported by a sharp rebound in HFIs like
IIP Consumer Durables (Figure 17). However, the recent dip in vehicle registrations reflects
persistent supply-side constraints owing to the shortage of semi-conductor chips rather than
lack of consumption demand. This is illustrated in Box 2 on global supply-side disruptions.
Further, RBI’s consumer confidence survey results on both the present situation and future
expectations suggest sustained uptick in consumer sentiments (Figure 18). Also indicative of
uptick in consumer sentiments is the steep rise in digital transactions, notably in UPI payments
owing to the pandemic induced shift to contactless payments. Private consumption is poised to
see stronger recovery with rapid coverage in vaccination and faster normalisation of economic
activity.