India's FY22 growth may fall to 8.8% from earlier 9.2% estimate: NSO

05 Feb '22

2 min read

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India’s economic growth in fiscal 2021-22 (FY22) may fall to 8.8 per cent from the earlier estimate of 9.2 per cent, according to the National Statistics Office (NSO), which recently said the pandemic had a lesser debilitating effect on the economy in FY21 than what was estimated earlier. The gross domestic product (GDP) in FY21 contracted by 6.6 per cent, against the 7.3 per cent dip estimated earlier.

NSO also revised down GDP growth for FY19 to 3.7 per cent from the earlier estimate of 4 per cent.

“Real GDP or GDP at constant (2011-12) prices for the years 2020-21 and 2019-20 stands at ₹ 135.58 lakh crore and ₹ 145.16 lakh crore, respectively, showing a contraction of 6.6 per cent during 2020-21 as compared to growth of 3.7 per cent during 2019-20,” NSO said in the revised national account data.

“FY21 GDP contraction pegged at minus 6.6 per cent from minus 7.3 per cent earlier. FY20 numbers revised to 3.7 per cent from 4 per cent. At this rate, FY22 growth rate is now at 8.8 per cent. We expect a further jump in FY23 estimates. However, all changes are purely of [the] base in FY20 as of now,” State Bank of India’s chief economist Soumya Kanti Ghosh tweeted.

Industry department data showed growth in the eight infrastructure sectors picked up in December to 3.8 per cent as the impact of heavy rains eased. It had dipped to a nine-month low of 3.1 per cent in November. However, core sector growth remained considerably lower than 8.4 per cent expansion seen in October.

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