Home / Economy / India's GDP to rise 9.2% in FY22: First advance estimate
Listen to this article

India's GDP may grow 9.2% in the current financial year ending March 2022, according to the first advance estimates released by the government.

Indian economy has gained momentum during the July-September period, inching gradually back to normalcy as coronavirus related disruptions eased significantly in the aftermath of a devastating second wave.

GDP for the second quarter of the financial year grew by 8.4% from a year ago, one of the fastest rates among major economies, data released by the government showed on Tuesday.

“Real GDP or GDP at Constant Prices (2011-12) in the year 2021-22 is estimated at 147.54 lakh crore, as against the Provisional Estimate of GDP for the year 2020-21 of 135.13 lakh crore, released on 31st May 2021. The growth in real GDP during 2021-22 is estimated at 9.2 per cent as compared to the contraction of 7.3 per cent in 2020-21," Ministry of Statistics & Programme Implementation said in a statement.

Meanwhile, real GVA is estimated at 135.22 lakh crore in 2021-22, as against 124.53 lakh crore in 2020-21, showing a growth of 8.6%.

Reserve Bank of India (RBI) has projected a GDP growth rate of 9.5% for the current financial year with inflation seen at 5.3%.

The growth in nominal GDP during 2021-22 is estimated at 17.6%, while nominal GVA is estimated at 210.37 lakh crore in 2021-22, as against 179.15 lakh crore in 2020-21, showing a growth of 17.4%.

The government estimated that most key sectors will likely see double-digit growth in FY22, aided by base effect, while private consumption may see a modest recovery in same period.

The projection is less than the 9.5% forecast by the International Monetary Fund (IMF) and S&P, while Moody's Investors Service had in recent weeks put India's growth forecast at 9.3%. Fitch Ratings has projected an 8.7% expansion.

The NSO estimates significant growth in 'mining and quarrying' (14.3%), and 'trade, hotels, transport, communication and services related to broadcasting' (11.9%).

The agriculture sector is estimated to see a growth of 3.9% in FY22, higher than the 3.6% expansion recorded in the previous financial year.

Vivek Rathi, director at consultancy Knight Frank India, said the third wave of the virus had impacted the estimates. "We hope to have a softer landing from the third wave and continue economic momentum without severe disruptions."

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Recommended For You

Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout