India’s economic growth slowed to 5.4 per cent in the third quarter of 2021-22 but higher than China’s GDP expansion of 4 per cent during the same period and the country retained its position as the world’s fastest-growing major economy.
In the current fiscal, GDP growth stood at 20.3 per cent in the April-June quarter and 8.5 per cent in the July-September period.
The National Statistical Office (NSO) in its second advance estimates of national accounts released on Monday pegged the country’s growth for 2021-22 at 8.9 per cent, a tad lower than 9.2 per cent 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 per cent. Earlier, the estimate was a 7.3 per cent contraction. Indian economy contracted 23.8 per cent in April-June in 2020 and 6.6 per cent in the 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 per cent 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.
According to NSO data, Gross Value Added (GVA) growth in the manufacturing sector remained almost flat at 0.2 pc in the third quarter, compared to a growth of 8.4 per cent a year ago. Meanwhile, China recorded a growth of 4 pc in the third quarter.
