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Home / Business News / India’s nominal GDP to grow 19 per cent in 2022, finance ministry pins hopes on reforms

India’s nominal GDP to grow 19 per cent in 2022, finance ministry pins hopes on reforms

In the first quarter of this financial year, the nominal GDP contracted by 22.6 per cent to Rs 38.08 lakh crore, compared to Rs 49.18 lakh crore in the same period last year.

business Updated: Sep 20, 2020, 19:13 IST
hindustantimes.com | Edited by Poulomi Ghosh
hindustantimes.com | Edited by Poulomi Ghosh
Hindustan Times, New Delhi
Chief economic adviser Krishnamurthy Subramanian believes India’s growth will bounce back on the wings of several reforms done in many sectors. (Photo: Ramesh Pathania/ Mint Archives)
Chief economic adviser Krishnamurthy Subramanian believes India’s growth will bounce back on the wings of several reforms done in many sectors. (Photo: Ramesh Pathania/ Mint Archives)

Finance ministry has estimated that India’s nominal GDP will grow by 19 per cent in nominal terms in financial year 2021-22, reported Mint. Nominal GDP is an assessment which includes the current prices of goods and services in its calculation.

“There are varied estimates. The chief economic advisor said in his presentation that it could go as high as 19%, while some had even said it could be 21% as an extreme case and others said it could be more modest,” NK Singh, chairman of the 15th Finance Commission, told Mint.

Also Read | Here is how the Indian economy can rebound

In the first quarter of this financial year, the nominal GDP contracted by 22.6 per cent to Rs 38.08 lakh crore, compared to Rs 49.18 lakh crore in the same period last year.

Despite the contraction, caused by the Covid-19 pandemic, many sectors are already on the path of recovery, chief economic adviser Krishnamurthy Subramanian said earlier. “When you take into account some of the reforms that have been done on the agriculture side, on labour, on privatization, all those together will increase productivity in the economy and therefore will help bringing back growth,” he had said.

In its latest forecast on September 11, Moody’s Investors Service had projected a 10.6% real GDP growth and a 4% CPI inflation for FY22. Goldman Sachs Group Inc estimated a 14.8 per cent contraction in GDP for the year through March 2021, while the ADB has forecast a contraction of 9 per cent.

The Reserve Bank of India is likely release its own growth forecast on October 1.

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