Indian Economic Growth Estimation:
India’s gross domestic product (GDP) is estimated to grow at 8.9% in 2021-22 instead of the 9.2% estimated earlier, with year-on-year growth during October-December 2021 slipping to 5.4% from 8.5% in the previous quarter, as per the second advance national income estimates released.
- Gross Value-Added (GVA) in the economy is expected to grow by 8.3% this financial year, from a 4.8% contraction in 2020-21, the National Statistical Office (NSO) said.
- Barring the contact-intensive segment of trade, hotels, transport, communication & services related to broadcasting, all sectors are expected to surpass pre-pandemic GVA levels this year.
- India’s GDP shrunk 6.6% in 2020-21, with the first half of the year recording a sharp contraction before GDP resurfaced to clock 0.7% growth in the October-December 2020 quarter.
- Economists expect the full year growth hopes for this year to be pared further from the 8.9% projected by the NSO, especially in light of the high oil prices as well as inflation trajectories.
- The GDP growth rates for the first and second quarters of 2021-22 were revised upwards marginally by the NSO from 20.1% to 20.3% and 8.4% to 8.5%, respectively.