India's GDP grew by 8.7% in 2021-22, quarter ended March registers 4.1% growth rate

As per data released by the Ministry of Statistics and Programme Implementation (MoSPI), India's Gross Domestic Product (GDP) growth during Q4 2021-22 was at a rate of 4.1%. The overall growth in India's GDP through FY 2021-22 was at 8.7%, as compared to a 6.6% contraction in FY 2020-21, the Government of India announced on Tuesday. 

"Real GDP or GDP at Constant Prices in the year 2021-22 is estimated to attain a level of Rs 147.36 lakh cr, as against the First Revised Estimate of Rs 135.58 lakh cr for  FY21. Growth in GDP during 2021-22 is estimated at 8.7% as compared to a contraction of 6.6% in 2020-21," the document by the National Statistical Office read. 

When it comes to the Nominal GDP or GDP at Current Prices in the year 2021-22, it is estimated to attain a level of₹ 236.65 lakh crore, as against ₹ 198.01 lakh crore in 2020-21, showing a growth rate of 19.5 percent. GDP at Constant (2011-12) Prices in Q4 2021-22 is estimated at ₹40.78 lakh crore, as against ₹39.18 lakh crore in Q4 2020-21, showing a growth of 4.1 percent.

Additionally, the Fiscal deficit for 2021-22, it is worked out to be 6.71% of the GDP, lower than the 6.9% projected by the Finance Ministry in the revised Budget Estimates. Unveiling the revenue-expenditure data of the Union government for 2020-21, the Controller General of Accounts (CGA) has said that the fiscal deficit in the absolute terms was to be Rs 15,86,537 crore (provisional). The revenue deficit at the end of 2021-22 was 4.37%. For the last financial year, the government had initially pegged the fiscal deficit at 6.8% of the GDP in the budget presented in February 2021.

IMF Pegs India's 2022 GDP Growth At 8.2%

Last month, the International Monetary Fund (IMF) projected 8.2% GDP growth for India in 2022, compared to 3.7% for the United States, 4.4% for China, and (-8.5%) for Russia. The IMF's projection for India's GDP growth was 0.8% lower than its projection in January. In FY24, India's GDP is projected to grow by 6.9%, which is 0.2% lower than what was projected earlier. However, even amid the faltering growth of the world's largest economies due to the Russia-Ukraine war, India is still projected to remain the world's fastest-growing major economy.

"Notable downgrades to the 2022 forecast include Japan (0.9 percentage point) and India (0.8 percentage point), reflecting in part weaker domestic demand—as higher oil prices are expected to weigh on private consumption and investment—and a drag from lower net exports," the IMF's World Economic Outlook for April 2022 said.

Meanwhile, the global growth was forecasted to slow from an estimated 6.1% in 2021 to 3.6% in 2022 and 2023, 0.8% and 0.2% lower for 2022 and 2023 than forecast in January. 

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