Indian economy marks 5.4% growth in third quarter, GDP growth revised to 8.9%text_fields
New Delhi: Indian economy witnessed a 5.4 per cent growth during the third quarter of this fiscal. In the current fiscal, GDP growth stood at 20.3% in the April-June quarter and 8.5% in the July-September period.
The National Statistical Office (NSO) in its second advance estimates of national accounts released on Monday, February 28, pegged the country's growth for 2021-22 at 8.9%, a tad lower than 9.2% estimated in its first advance estimates released in January. Besides, NSO revised its estimates of GDP contraction for the coronavirus pandemic-hit last financial year (2020-21) to 6.6%. Earlier, the estimate was 7.3% contraction.
India's economy contracted 23.8% in April-June in 2020 and 6.6% in July-September quarter in 2020.
"While an adverse base was expected to flatten growth in Q3 FY2022, the initial estimates of the NSO are sorely below our expectations (6.2% for GDP), with a marginal rise in manufacturing and a contraction in construction that is surprising despite the heavy rainfall in the southern states," Aditi Nayar, Chief Economist at ICRA, said. "GDP at constant (2011-12) prices in Q3 of 2021-22 is estimated at Rs 38.22 lakh crore as against Rs 36.26 lakh crore in Q3 of 2020-21, showing a growth of 5.4%," an official statement said.
According to the statement, real GDP or Gross Domestic Product (GDP) at constant (2011-12) prices in 2021-22 is estimated to attain a level of Rs 147.72 lakh crore as against the first revised estimate of GDP for the year 2020-21 of Rs 135.58 lakh crore, released on January 31, 2022.
The growth in GDP during 2021-22 is estimated at 8.9% as against a contraction of 6.6% in 2020-21. In value terms, GDP stood at Rs 38,22,159 crore in October-December 2021-22, higher than the Rs 36,22,220 crore in the corresponding period of 2020-21.
According to NSO data, Gross Value Added (GVA) growth in the manufacturing sector growth remained almost flat at 0.2% in the third quarter of 2021-22, compared to a growth of 8.4% a year ago.
Farm sector GVA growth was slow at 2.6% in the third quarter compared to 4.1% growth a year ago. Construction sector GVA declined by 2.8% as against a growth of 6.6% a year ago. The mining sector grew by 8.8%, as against a contraction of 5.3%. Electricity, gas, water supply and other utility services segment posted a growth of 3.7% in the third quarter of this fiscal year, against 1.5% expansion a year ago.
Similarly, trade, hotel, transport, communication and services related to broadcasting grew by 6.1% compared to 10.1% contraction a year ago.
Financial, real estate and professional services growth stood at 4.6% in Q3 FY22, compared to a growth of 10.3%. Public administration, defence and other services grew at 16.8% during the quarter under review, compared to 2.9% contraction a year earlier.