India's GDP rate weakening every quarter; no sign of promised recovery: P Chidambaram

India's GDP is weakening with every quarter and there is no sign of the promised recovery, stated Congress leader P Chidambaram said on Wednesday while reacting to quarterly growth rates in the fiscal year 2021-22.

Referring to the data released by the National Statistical Office (NSO) on Tuesday, May 31, Chidambaram also pointed out that GDP in the current fiscal is barely above the level achieved in 2019-20. "That means that after two years, India’s economy is at about the same level as it was on 31-3-2020," the former union finance minister said in a tweet. 

India’s economic growth slowed during Q4 of FY 2021-22 to 4.1% - a four-quarter low, reflecting the impact of the Omicron wave of the COVID-19 pandemic on the manufacturing sector and contact-intensive services. The overall growth in India's GDP through the full fiscal year was at 8.7%, down from 8.9% estimated in February. The economy had witnessed a 6.6% contraction in FY 2020-21.

India's GDP beats estimates, records only 4.1% growth in Q4

The fourth-quarter GDP growth was lower than the 5.4% growth seen in the October-December quarter, but more than the 2.5% growth rate in January-March 2021.

"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. 

The Nominal GDP or GDP at Current Prices in the year 2021-22 is estimated to attain a level of₹ 236.65 lakh crore, as against Rs 198.01 lakh crore in 2020-21, showing a growth rate of 19.5%. 

GDP at Constant (2011-12) Prices in Q4 2021-22 is estimated at Rs 40.78 lakh crore, as against ₹39.18 lakh crore in Q4 2020-21, showing a growth of 4.1%.