The country’s economy grew a moderate 5.4% in the October-December quarter, when India was grappling with the Omicron wave, against 8.5% in the previous quarter, while growth in 2021-22 is likely to be 8.9%, according to latest data released by National Statistical Office on Monday.
Data released separately by the Controller General of Accounts (CGA) showed the country’s fiscal deficit – the difference between what the government earns and spends -- between April 2021 and January 2022 rose to ₹9.38 lakh crore, or 58.9% of the target for 2021-22.
The country’s fiscal deficit is projected to be higher at 6.9% this fiscal ending March 2022 as against 6.8% estimated earlier.
Gross value added, a measure that subtracts taxes and subsidies, in the October-December quarter stood at 4.7% compared to 8.4% in the previous quarter, the data showed.
Asia’s third-largest economy is set to be the world’s fastest growing economy, according to finance ministry’s projections but rising inflation, Russia’s invasion of Ukraine and soaring oil and gas prices have appeared as fresh downsides risks.
The National Statistical Office, which released the second advance estimates Monday, revised the full-year growth to 8.9% in 2021-22 from 9.2% pegged in the first advance estimates.
{{/usCountry}}The National Statistical Office, which released the second advance estimates Monday, revised the full-year growth to 8.9% in 2021-22 from 9.2% pegged in the first advance estimates.
{{/usCountry}}The lower GDP forecast has to do partly do with a revised estimate of growth during 2020-21. According to the revision, the country’s gross domestic product (GDP) shrunk 6.6% during 2020-21, from 7.3% estimated earlier.
Nominal GDP, a measure of growth that is not adjusted for inflation, in 2021-22 is estimated to grow 19.4%, from ₹198 lakh crore in 2020-21 to ₹236.44 lakh crore in the currently fiscal year. Nominal GDP is an important determiner of tax revenues.