India's GDP grows at 8.7% for FY 2021-22

New Delhi, June 1: India’s gross domestic product (GDP) grew 4.1 percent in the fourth quarter of the financial year 2021-22. For the full financial year 2021-22, the GDP saw a growth of 8.7 percent. The economic growth had witnessed a contraction of 6.6 percent in the previous financial year 2020-21.

 

 

 

The gross domestic product (GDP) had expanded by 2.5 percent in the corresponding January-March period of 2020-21. The economy had witnessed a growth of 5.4 percent in the December 2021 quarter.

 

 

 

“Real GDP or gross domestic product (GDP) at constant (2011-12) prices in the year 2021-22 is estimated to attain a level of Rs 147.36 lakh crore, as against the First Revised Estimate of Rs 135.58 lakh crore for the year 2020-21, released on 31.01.2022. The growth in GDP during 2021-22 is estimated at 8.7 percent as compared to a contraction of 6.6 percent in 2020-21," according to an official statement released on Tuesday. The GDP growth of 8.7 percent in 2021-22 is significantly better than last year’s 6.6 percent contraction and points toward recovery from the pandemic-driven slowdown. However, it is lower than the 8.9 percent pegged in the second advance estimates (SAE) for 2021-22 released by the National Statistical Office (NSO) in February. The 8.7 percent growth also falls short of the Reserve Bank of India’s (RBI) estimate of 9.5 percent.

 

 

During the financial year 2021-22, gross value added (GVA) — which is GDP minus net product taxes and reflects growth in supply — grew 8.1 percent against a contraction of 4.8 percent in 2020-21. Net taxes on products jumped 16.1 percent year on year to Rs 11.3 lakh crore in the financial year 2021-22, compared with a contraction of 24.9 percent a year ago. The agriculture sector during the financial year 2021-22 slowed to three percent, compared with 3.3 percent a year ago. Manufacturing, however, saw an improvement in 2021-22 to grow at 9.9 percent as against a contraction of 0.6 percent in 2020-21, according to the latest data released by the National Statistical Office (NSO). GDP in nominal terms, which factors in inflation, grows 19.5 percent as against a contraction of 1.4 percent last year.