In accordance with the ‘Provisional Estimates of Annual National Income 2021-22 and Quarterly Estimates of Gross Domestic Product for the Fourth Quarter (Q4) of 2021-22’ by National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI), India’s economy grew by 4.1% year-on-year (y-o-y) in the Q4FY22 (January-March quarter of 2021-22).
- The overall growth estimate for FY22 is reduced to 8.7% from 8.9% projected earlier. However, this is the highest in 22 years in terms of back series data.
- In FY21, the economy had contracted by 6.6% amid COVID-19 pandemic disrupted business activities.
Major Estimates:
i.Real Gross Domestic Product (GDP) at Constant (2011-12) Prices in FY22 is estimated to attain a level of Rs 147.36 lakh crore, as against the First Revised Estimate of Rs 135.58 lakh crore for FY21.
ii.Nominal GDP or GDP at Current Prices in FY22 is estimated to attain a level of Rs 236.65 lakh crore, as against Rs 198.01 lakh crore in 2020-21, showing a growth rate of 19.5%.
iii.GDP at Constant (2011-12) Prices in Q4FY22 is estimated at Rs 40.78 lakh crore, as against Rs 39.18 lakh crore in Q4FY21.
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Key Points:
i.In FY22, all sectors except trade, hotels and communication services were above the pre-pandemic levels of FY20.
ii.Growth in private final consumption expenditure, or private spending, decelerated in Q4FY22 to 1.8%.
- Government spending, however, picked up to grow at 4.8%, supporting overall growth.
iii.Gross Fixed Capital Formation, which represents investment demand in the economy, slowed to 5.1% in Q4FY22.
iv.On the supply side, the manufacturing sector contracted 0.2% in the Q4FY22.
v.Agriculture, Forestry & Fishing growth remained robust at 4.1% in Q4FY22.
vi.The labour-intensive construction sector showed a positive growth at 2% in Q4FY22.
vii.Growth in services output slowed to 5.5% as a result of a sluggish performance of trade, hotel transport, communications services (5.3%) in Q4FY22.
viii.Gross value added (GVA) at basic prices grew at 3.9% in the Q4FY22 and 8.1% in FY22.
India Core Sector Output Grows 8.4% in April 2022
The Office of Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT) has released Index of Eight Core Industries (ICI) for the Month of April, 2022.
- In accordance with this, the combined Index of Eight Core Industries stood at 143.2 in April 2022, which is an increase of 8.4% (provisional) as compared to the Index of April 2021.
Key Points:
i.The production of Coal, Electricity, Refinery Products, Fertilizers, Cement and Natural Gas industries increased in April 2022 over April 2021.
ii.Final growth rate of Index of Eight Core Industries for January 2022 is revised to 4.0% from its provisional level 3.7%.
iii.The growth rate of ICI during FY22 was 10.4% (P) as compared to the FY21.
What is ICI?
ICI measures combined and individual performance of production in selected eight core industries viz. Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity.
- The Eight Core Industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).
Other Projections:
i.Barclays revised down its FY23 growth forecast to 7%.
ii.S&P Global Ratings in May 2022 slashed India’s growth forecast to 7.3% from 7.8% for FY23 on rising inflationary pressures, and amid Russia-Ukraine war.
Recent Related News:
i.In accordance with the Second Advance Estimates (SAE) of National Income, 2021-22 & Quarterly Estimates of GDP for the 3rd quarter(Q3) (October-December), 2021-22 by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI), the Indian economy grew by 5.4% year-on-year in the Q3FY22.
ii.As per the Global Macro Outlook 2022-23 report of Moody’s Investors Service, it has lowered India’s GDP (Gross Domestic Product) growth forecast for 2022 by 0.4 percent to 9.1 percent from its earlier projection of 9.5 percent.
About Ministry of Statistics and Programme Implementation (MoSPI):
Minister of State Independent Charge – Rao Inderjit Singh
Constituency– Gurugram, Haryana
