India has seen impressive growth in the past few months. According to the Ministry of Statistics and Programme Implementation, India’s GDP is forecasted to grow by 9.2% in FY 2022-23. GDP is said to witness a 17.6% growth nominally. However, it is below the existing forecast by RBI. Last month, the Central Bank had released an estimate of 9.5% growth. The farming, mining and manufacturing sectors are said to be the greatest contributors.
Although the growth estimate is the highest ever in 17 years, it is favoured by the base value. Indian GDP contracted by 7.3% in FY 2020-21. With a lower level to compare to, a higher growth rate is possible. The estimated growth rate for the third and fourth quarter of FY 2021-22 are 6.6% and 6% respectively.
Moreover, 2022 is set to be a big year for India. The size of the current Indian economy, after considering current dollar prices, is said to over $3 trillion. IHS Markit has submitted an estimate stating that India would become the world’s fastest growing economy by March 2022. Presently, India is the sixth-largest economy behind US, China, Japan, Germany and UK. IHS Markit has stated that India’s GDP would grow from $2.7 trillion in 2021 to reaching $8.4 trillion. With a GDP that high, India would be the second largest economy in Asia and the third largest in the whole world.