India's economy grows 5.4% in third Quarter of FY22; Full-Year Growth Forecast at 8.9%

In the latest estimates released by the Indian government statistical office, Indian economy has grown at a pace of 5.4% in the October-December quarter of 2021. For the financial year 2021-22, the statistical office has predicted a growth rate of 8.9% which is lower than the first advance estimate of 9.2% released by them earlier in the year. The reason for the downward revision is the base effect caused by the downward revision of FY21 GDP to 6.6% from earlier estimate of 7.3%.GDP rate for FY20 has also been revised down to 3.7% from 4%.

According to the chief economist of ICRA, Aditi Nayar, the GDP estimate of 4.8% for Q4 of FY22 is very optimistic looking at the third wave of covid and high commodity prices fueled by geopolitical tensions.

In Q3 of 2022, mining sector grew 8.8% QoQ, Trade, hotel, transport, communication grew by 6.1% QoQ ,Agriculture sector grew at 2.6% QoQ, manufacturing sector grew 0.2% QoQ, financial services sector grew 4.6% compared to last quarter.

Source:Reports/Publications | MOSPI

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