India's GDP to grow at 9.2% to $2 trillion in FY22 against 7.3% contraction in FY21: Govt

In the first advance estimates of national income released by the Government of India on Friday, the growth in real GDP during 2021-22 is estimated at 9.2% as compared to the contraction of 7.3% in 2020-21. The government releases advance GDP estimates numbers ahead of the Budget to calculate crucial figures such as tax collection estimates and fiscal deficit projections.

Indian economy estimated to grow at 9.2% in FY22

Real GDP in the year 2021-22 is estimated at Rs 147.54 lakh crore ($1.98 Trillion), as against the Provisional Estimate of GDP of Rs 135.13 lakh crore, released in May 2021. The growth in real GDP during 2021-22 is estimated at 9.2% as compared to the contraction of 7.3% in 2020-21. Real GVA at Basic Prices is estimated at Rs 135.22 lakh crore in 2021-22, as against Rs 124.53 lakh crore in 2020-21, showing a growth of 8.6%,” the NSO said in its release.

The NSO further said in its release, "Nominal GDP or GDP at Current Prices in the year 2021-22 is estimated at ₹232.15 lakh crore, as against the Provisional Estimate of GDP for the year 2020-21 of Rs 197.46 lakh crore, released on 31st May 2021. The growth in nominal GDP during 2021-22 is estimated at 17.6 per cent. Nominal GVA at Basic Prices is estimated at Rs 210.37 lakh crore in 2021-22, as against Rs 179.15 lakh crore in 2020-21, showing a growth of 17.4 percent." 

Flashback to the 1st and 2nd Quarters

It is pertinent to mention here that the Indian economy remained on track to post the fastest growth among major economies this year as its GDP expanded by 8.4 per cent in the second quarter, which was slower than the 20.1 per cent expansion in the previous quarter, which largely reflected a bounce back from last year's crash. 

The story around the world is quite similar. The US showed a growth rate of 2.1 per cent during the second quarter against 6.3 per cent in the previous quarter. The UK recovery also slowed down to just 1.3 per cent during the quarter, compared to 5.5 per cent in the previous one.

Meanwhile, the International Monetary Fund (IMF) predicted India's GDP growth at 9.5% in 2021 and 8.5% for 2022.