India’s GDP grows by 5.4% in third quarter, 8.9% growth estimated in 2021-22.

India reported a 5.4% GDP growth in the third quarter of 2021-22 – October to December, data released by the National Statistical Office (NSO) on Monday showed. The growth in the previous quarter was 8.4%. 

The NSO estimates that India’s GDP will grow at 8.9% in the financial year 2021-22. The Reserve Bank of India has pegged India to grow at 9.2% for current financial year. The figures are against a contraction of 6.6% in 2020-21.

“Real GDP or Gross Domestic Product (GDP) at Constant (2011-12) Prices in the year 2021-22 is estimated to attain a level of Rs 147.72 trillion, as against the First Revised Estimate of GDP for the year 2020-21 of Rs 135.58 trillion, released on 31.01.2022,” said MoSPI.

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The economy had grown by 20.3% in the first quarter of this fiscal due to lower base effect. In the second quarter, the GDP grew by 8.5% . China’s economy grew by 4% in October-December 2021.

Meanwhile, data released on Monday showed that the central government’s fiscal deficit at end-January worked out at 58.9% of the annual budget target for 2021-22. 

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The fiscal deficit was 66.8% of Revised Estimate (RE) of 2020-21 during the corresponding period of the last fiscal.

In actual terms, the deficit was Rs 9,37,868 crore at end-January 2022 against upwardly revised annual estimate of Rs 15.91 lakh crore, according to the data released by the Controller General of Accounts (CGA).

The country’s fiscal deficit — the difference between total revenue and total expenditure of the government — is projected to be higher at 6.9% this fiscal ending March 2022 as against 6.8% estimated earlier.

The total receipts of the government at end-January were Rs 18.71 lakh crore or 85.9% of the Revised Estimates (RE) for 2021-22. The collection was about 80% of the RE of 2020-21 in the corresponding period last fiscal.