India’s gross domestic product grew at 8.7% in 2021-’22 as against a contraction of 6.6% during the last financial year, showed government data released on Tuesday.
The country registered gross domestic product, or GDP, growth of 4.1% in the fourth (January-March) quarter, according to the National Statistical Office. The country’s GDP had risen by 5.4% in the third (October-December) quarter.
The GDP for 2021-’22 is less than the 8.9% estimated by the Ministry of Statistics and Programme Implementation, NDTV reported.
In October, the Reserve Bank of India had predicted that the Indian economy would grow by 9.5% in 2021-2022.
However, in January, the International Monetary Fund slashed its growth forecast for India in 2021-’22 to 9% from the earlier estimate of 9.5%, according to The Times of India. The organisation had cited the impact of the coronavirus for the new forecast.
The reduction in the growth rate was because of a drop in growth in agriculture, mining, construction and manufacturing sectors.
The output of eight infrastructure sectors increased by 8.4% in April, according to the government data. The output of eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity had expanded by 4.9% in March 2022.
Fiscal deficit improved to 6.7% of GDP
Fiscal deficit improved to 6.71% of the GDP for 2021-’22 over the revised budget estimate of 6.9%, the government data showed. Higher tax realisation was accredited to the improved rate.
Fiscal deficit of a government is the gap between its expenditure and revenues.
The controller general of accounts said that the fiscal deficit was Rs 15,86,537 crore (provisional). The finance ministry in February had estimated the deficit at Rs 15,91,089 crore, or 6.9% of the GDP.
According to the data, the government received tax receipts worth Rs 18.2 lakh crore as against the revised estimates of Rs 17.65 lakh crore. The total expenditure was higher as well at Rs 37.94 lakh crore against the revised estimate of Rs 37.7 lakh crore.