Indian GDP grew 8.7% in FY22

CEA says India’s growth is better than expected

The Indian economy expanded 8.7 per cent for the full financial year 2021-22 as against a contraction of 6.6 per cent in FY21, while it grew 4.1 per cent in in January-March quarter.

“Real GDP at Constant

(2011-12) Prices in the year

2021-22 is estimated to attain a level of `147.36 lakh crore, as against the first revised estimate of `135.58 lakh crore for the year 202021. For the full financial year 2021-22, economy expanded at 8.7 per cent as against a contraction of 6.6 per cent in FY21, while India’s GDP grows 4.1 per cent in Q4” the ministry of statistics & programme implementation (MOSPI) said.

A separate set of data showed that fiscal deficit for 2021-22 worked out to be

6.71 per cent of the GDP, which is lower than 6.9 per cent projected by the finance ministry in the revised budget estimates.

Reacting the data, Chief Economic Advisor (CEA) Anantha Nageswaran said, “The Q4 GDP at 4.1 per cent is better than estimated. Besides, the government capital expenditure on

FY2021-22 has also fully met. In the context of a developing countries, recession is rarely on the cards. It is almost always a question of growth slowing down. While the Omicron variant of the coronavirus has hurt the growth, India has managed to keep momentum intact.”

On the rising inflation across the country, he pointed out that the growth vs inflation challenges are universal. “Inflation pressures at seven per cent will remain elevated. India is better placed than some other countries as far as inflation is concerned,” he added.