Financial Insights

GDP growth slows down as forecasts for growth fall from 9.2% to 8.9%

India had an estimated growth in its GDP of 9.2% till yesterday, the highest growth rate among all economies. However, yesterday the government’s National Statistical Office (NSO) released data regarding the GDP growth in Oct-Dec quarter, which was 5.4%, lower than the initial projections. This under-performance has led to growth estimates being revised at 8.9% from 9.2%.

The construction sector saw a contraction of 2.8% and manufacturing sector saw a meagre growth of 0.2%. The lower GDP growth estimate is projected after assuming a growth rate of 4.8% in the last quarter of FY21-22. The government estimates that there will be an even further economic slowdown on account of existing Covid-19 conditions and the Russia-Ukraine crisis.

GDP grew 20.3% and 8.5% in the last two quarters respectively.

Highlight by Aman Agarwal.

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