New Delhi: The gross domestic product (GDP) of India expanded 5.4 per cent in the October-December quarter (Q3FY22), according to the government data published on Monday.
The National Statistical Office’s (NSO’s) second advance estimates for FY22 pegged the current fiscal year’s real gross domestic product (real GDP) growth at 8.9 per cent compared with 9.2 per cent projected in the first advance estimates.
The economy expanded stupendously 20.1 per cent in the April-June quarter and 8.4 per cent in July-September, mostly because of weak performances in the same quarters in 2020 when the Covid-19 pandemic took hold and nationwide lockdowns were imposed.
“Real GDP or Gross Domestic Product at Constant (2011-12) Prices in FY21-22 is estimated to attain a level of Rs 147.72 lakh crore, as against the First Revised Estimate of GDP for the year 2020-21 of Rs 135.58 lakh crore , released on 31.01.2022,” said Ministry of Statistics and Program Implementation.
However, India’s industrial output grew a mere 0.4 per cent in December, a much slower pace than expected.
The growth in the October-December quarter is lower than the previous quarter (July-September) basically due to fall in growth in sectors like agriculture, mining and manufacturing during the period under review. However this is the fifth consecutive quarter when there has been a positive growth in GDP.
The Reserve Bank of India (RBI) has been prioritizing growth and held interest rates at record lows at its February meeting, despite inflation breaching the upper limit of its target range.
The reason for this downward revision is the recent upward revision in FY21 GDP contraction, to negative 6.6 per cent from negative 7.3 per cent.
Economists had expected about 6 per cent year-on-year (YoY) growth during the three months to end-December, slower than the previous two quarters, with new fears rising over slowing momentum after Russia’s invasion of Ukraine.
Meanwhile, the Economic Survey has projected a growth rate of 9.2 per cent for the current financial year ending March 2022.
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