According to the second advanced and quarterly estimates of GDP released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday, India’s Gross Domestic Product (GDP) for the October-December quarter (Q3) increased by 5.4 percent, while GDP for the entire financial year 2021-22 (FY22) is expected to increase by 8.9 percent.
In addition, the government changed its GDP forecasts for the prior two quarters by a small amount. According to the most recent figures, GDP increased by 8.5 percent in the July-September quarter (Q2), compared to an earlier estimate of 8.4 percent, and by a steep 20.3 percent in the April-June quarter (Q1), compared to an earlier estimate of 20.1 percent.
GDP growth rate predicted lower than the prior projection
The Gross Domestic Product growth rate for FY22 was predicted to be lower than the prior projection of 9.2%, with Q3 GDP expected to be around 6%. The administration forecasted a 9.2 percent increase in Gross Domestic Product in FY22 in its first advanced estimate released last month. However, this does not account for the loss of economic activity in recent months as a result of the new Covid-19 pandemic types.
In the preceding fiscal year, India’s economy shrank by (-)6.6 percent (FY21). According to MoSPI data, the FY22 GVA at Basic Prices is expected to be 8.3%. The manufacturing sector, which had grown by 5.6 percent in the previous quarter, increased by 0.2 percent in the third quarter. Aside from that, the agricultural, forestry, and fisheries sector, which increased 3.7 percent in the second quarter, grew 2.6 percent in the third quarter.
Among the other industries, the construction industry shrank by (-)2.8 percent in Q3, compared to an increase of 8.2 percent in Q2. Apart from that, the broadcasting segment’s trade, hotels, transportation, communication, and services grew by 6.1 percent in Q3, down from 9.5 percent in Q2.