India estimates 8.7 percent GDP growth for FY 2021-2022
New Delhi, May 31 (EFE).- India has estimated an 8.7 growth in its GDP for the financial year 2021-2022, which ended in March, marking a 15 percent jump from the previous fiscal year, when the Indian economy had contracted due to the impact of the coronavirus pandemic.
“The growth in GDP during 2021-22 is estimated at 8.7 percent as compared to a contraction of 6.6 percent in 2020-21,” the National Statistical Office said in a press release on Tuesday.
This is the highest annual growth for the Indian economy since 1999, and its fourth highest in the last 60 years..
The growth was mainly driven by the revival of services related to trade, hospitality and transport, which grew at 11.1 percent in 2021-2022, compared to a 20.2 percent contraction registered during the previous year due to coronavirus restrictions.
Other key sectors were public administration, defense and other services, with a growth of 12.6 percent compared to the -5.5 percent results in 2020-21, while manufacturing recorded a 11.5 percent growth compared to a decline of 0.6 percent the year before, the NSO said in its report.
However, the growth rate is lower than the previous official estimates.
The Reserve Bank of India had predicted a 9.5 percent GDP growth, while the Indian ministry of statistics had put the figure at 8.9 percent.
The third Covid wave caused by the omicron virus, which peaked in mid-January, and the inflationary pressure triggered by the Ukraine war are considered the two main reasons behind the economy growing at a slightly slower rate than expected.
Hit by these setbacks, the growth in the last quarter of the fiscal year dropped to 4.1 percent, the lowest of the cycle and much below the RBI forecast of 6.1 percent.
In order to curb inflation, in early May the RBI raised its key lending rate from 4 to 4.4 percent, changing the indicator for the first time in two years. EFE