New Delhi: The country’s economic growth rate slowed to 5.4 percent in the third quarter of the current financial year 2021-22 in October-December. However, China’s economic growth rate of four percent over the same period is higher. With this the country has retained the status of the world’s fastest growing major economy. The GDP growth rate was 20.3 percent in the first quarter of the current financial year and 8.5 percent in the second quarter July-September.
According to the second advance estimate of the National Statistical Office (NSO) released on Monday, the GDP growth rate in the financial year 2021-22 is estimated to be 8.9 percent. Whereas in the first advance estimate released in January, the economic growth rate was expected to be 9.2 percent in the current financial year. Apart from this, the fall in GDP growth rate for the financial year 2020-21 affected by the corona virus epidemic has been reduced from 7.3 percent to 6.6 percent. The Indian economy contracted by 23.8 percent in the April-June quarter of 2020-21 and 6.6 percent in the July-September quarter.
According to an official statement, “GDP at constant prices (2011-12) is estimated at Rs 38.22 lakh crore in the third quarter as against Rs 36.26 lakh in the third quarter (October-December) of 2020-21. This represents an increase of 5.4 per cent.
Aditi Nair, Chief Economist, ICRA, said, “Economic growth was expected to remain stable in the third quarter of 2021-22 due to an unfavorable comparative basis. But with a modest growth in the manufacturing sector and a surprise contraction in the manufacturing sector despite heavy rains in the southern states, the initial estimates of the NSO are much below our expectations (6.2 per cent).
According to the statement, the real GDP (Gross Domestic Product) growth in 2021-22 at constant prices (2011-12) is estimated at Rs 147.72 lakh crore. Whereas under the first revised estimate for 2020-21 released on January 31, 2022, it was Rs 135.58 lakh crore.
Based on this, the GDP growth rate is estimated at 8.9 percent in 2021-22, while it declined by 6.6 percent in 2020-21. GDP in value terms stood at Rs 38,22,159 crore in the October-December quarter of 2021-22. This is higher than Rs 36,22,220 crore for the corresponding period of 2020-21.
According to NSO data, the gross value added (GVA) growth in the manufacturing sector remained almost stagnant at 0.2 per cent in the third quarter of 2021-22. It grew by 8.4 percent in the same quarter a year ago. In the agriculture sector, GVA growth slowed to 2.6 per cent in the third quarter from 4.1 per cent in the same quarter a year ago. GVA growth in the construction sector declined by 2.8 per cent in the quarter under review, as compared to a growth of 6.6 per cent in the same quarter of 2020-21 a year ago.
The growth rate of the mining sector stood at 8.8 per cent in the October-December, 2021 quarter as against a decline of 5.3 per cent in the same quarter a year ago. Electricity, gas, water supply and other utility services grew at 3.7 per cent in the third quarter of the current fiscal as against 1.5 per cent growth in the same quarter a year ago.
Similarly, business, hotels, transport, communication and broadcasting services sectors grew by 6.1 per cent as against a decline of 10.1 per cent in the October-December quarter of 2020-21 a year ago. Financial, real estate and professional services grew at 4.6 per cent in the third quarter of 2021-22 as against a growth of 10.3 per cent in the same quarter a year ago.
The growth rate of public administration, defense and other services sectors stood at 16.8 percent in the quarter under review. It had declined by 2.9 percent in the same quarter of 2020-21 a year ago. Meanwhile, China’s economic growth rate has been four percent in the October-December, 2021 quarter.