NEW DELHI: India’s gross domestic product (GDP) growth registered an increase of 5.4 percent in the third quarter (October-December period) as against the growth during the same period of the last fiscal, showed the latest official data released on Monday. The National Statistical Office (NSO) said the GDP at the constant price (2011-12 series) in the third quarter has been estimated to be Rs 38.22 lakh crore in the financial year 2021-22, as against Rs 36.26 lakh crore in the third quarter of the previous financial year, showing growth of 5.4 percent on a year-on-year basis.
As per the second advance estimate of the national income released today, the real GDP at constant prices for the entire fiscal of the financial year 2021-22 is estimated to attain a level of Rs 147.72 lakh crore as against the first revised estimate of GDP for the previous fiscal (FY 2020-21) at Rs 135.58 lakh crore. As per the first advance estimate, the real GDP is expected to grow by 8.9 percent in the current financial year as against a decline of 6.6 percent in the last financial year.
While nominal GDP, which also takes into account the inflation, at current prices in the year 2021-22 is estimated to attain a level of Rs 236.44 lakh crore as against Rs 198.01 lakh crore for the last fiscal, showing a growth rate of 19.4 per cent. Though India’s GDP growth rate at 5.4 per cent in October-December period is better than that of China for the same period which registered a growth of 4 per cent but its growth rate has declined in comparison with the first two quarters – April to June and July to September period.
GDP growth rate declines in Q3
As per the latest official data, the Indian economy registered a growth of 20.3 per cent in the April-June period and 8.5 per cent in July-September. The sharp spike of over 20 percent seen in the first quarter was mainly attributed to a low base effect as the Indian economy had declined sharply in April-June 2020 period to a nationwide lockdown imposed by the government.
In India, it takes three years to get the final figures of GDP growth for a financial year as it undergoes six rounds of estimation and revision. The second advance estimate released today will be further revised in the provisional estimate of GDP growth which will be released at the end of May this year.
Annual GDP growth expected to be 8.9 per cent
The first advance estimate of GDP growth has been prepared by using the indicators such as factory output measured as the Index of Industrial Production (IIP), the financial performance of listed companies in the private sector for a period of the first 9 months of the current fiscal, second advance estimates of crop production, production of major livestock products in the rainy season.
These estimates also include the accounts of central and state governments, bank deposits and credits, performance of railways, civil aviation, cargo handled at the major seaports, sales of commercial vehicles, among other things.
Also read: Explained: Why it takes 3 years to calculate GDP growth in India
