On January 7, 2022, the First Advance Estimates (FAE) of National Income at both Constant (2011-12) and Current Prices, for the financial year 2021-22 (FY22) released by National Statistical Office (NSO), Ministry of statistics and planning implementation (MOSPI).
- In accordance with the estimates the growth in real Gross Domestic Product (GDP) or GDP at Constant Prices (2011-12) for FY22 stood at 9.2% as compared to the contraction of 7.3% (-7.3%) in 2020-21. It is 1.3% over the pre-Covid levels of FY20.
- This estimate is lower than the 9.5% GDP growth projection of the Reserve Bank of India (RBI) in December 2021.
- Per capita net national income in real terms is estimated to be Rs 1,06,975 crore in FY22, lower than Rs 1,07,589 crore in FY20.
Key Figures:
i.Real GDP in FY22 is estimated at Rs 147.54 lakh crore, as against the Provisional Estimate of GDP for 2020-21 of Rs 135.13 lakh crore, released on May 31, 2021.
ii.Real Gross Value Added (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% compared with a contraction of 6.2% in FY21.
iii.Nominal GDP or GDP at Current Prices for FY22 is estimated at Rs 232.15 lakh crore, as against the Provisional Estimate of GDP for FY21 of Rs 197.46 lakh crore.
- The growth in nominal GDP during FY22 is estimated at 17.6% against the budget estimate of 14.4%.
iv.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%.
v.The agriculture sector is estimated to see a growth of 3.9% in FY22, higher than 3.6% growth recorded in the previous financial year.
vi.Manufacturing sector is expected to see a growth 12.5% against a contraction of 7.2% (-7.2%) a year ago.
v.There is significant growth in mining and quarrying (14.3%), and trade, hotels, transport, communication and services related to broadcasting (11.9%).
vi.Financial, real estate and professional services will grow 4% compared with a 1.5% contraction (-1.5%) last year.
Click Here for Official Release on First Advance Estimates
Use of this advance estimates:
Introduced in FY2016-17, the Central Government uses these advance estimates for preparing the Union Budget. It is used for projecting GDP growth rate for the next financial year, tax collection estimates, and fiscal deficit target.
- The advance estimates are based on benchmark indicators, such as the index of industrial production (IIP) of first seven months of the fiscal year; financial performance of listed private companies; 1st Advance Estimates of Crop production; Bank Deposits & Credits; Net Tonne Kilometres and Passenger Kilometres for Railways; Passengers and Cargo handled by Civil Aviation; Cargo handled at Major Sea Ports; Sales of Commercial Vehicles, among others.
Points to be noted:
i.The second advance estimates of national income for the year 2021-22 and quarterly GDP estimate for the quarter October-December, 2021 (Q3 2021-22) will be released on February 28, 2021.
ii.Union Minister Nirmala Sitharaman, Ministry of Finance is scheduled to announce Union Budget 2022-23 on February 1.
iii.HDFC (Housing Development Finance Corporation Limited) Bank expects the GDP growth for FY22 to be between 9% and 9.5%.
iv.In FY22, World Bank and Moody’s have projected the Indian economy to grow at 8.3% and 9.3%, respectively.
Recent Related News:
In accordance with the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation, ‘Situation Assessment of Agricultural Households and Land Holdings of Households in Rural India, 2019’ released on September 10, 2021, more than half of India’s agricultural households were in debt, with an average outstanding of Rs 74,121 in 2018 as compared to Rs 47,000 in 2013, an increase of 57.7%.
About Ministry of Statistics and Programme Implementation (MoSPI):
Minister of State Independent Charge – Rao Inderjit Singh
Constituency– Gurugram, Haryana
