India Emerges As Fastest-Growing Economy With GDP Growth Rate of 8.7 Per Cent

Inflation jumped to an eight-year high of 7.8 per cent in April and the Reserve Bank of India (RBI) was forced to raise repo rate by 40 basis points

New Delhi: The Indian economy grew at 8.7 per cent, according to the data released by National Statistical Office (NSO) on Tuesday. The Gross Domestic Product (GDP) growth was estimated at 8.7 per cent in the financial year 2021-22 against a contraction of 6.6 per cent in the previous fiscal. In January-March period, the GDP however slowed 4.1 per cent from 5.4 per cent growth in the previous quarter as soaring prices slowed down consumer spending.

WHY THIS GDP GROWTH IS IMPORATANT:

• This GDP growth is significant as it shows the progress of economic recovery after the onset of the Covid-19 pandemic in 2020.
• GDP growth estimate has come to be lower than the second advance estimate of 8.9 per cent (released on February 28) and first advance estimate of 9.2 per cent (released in January).
• To recall, the RBI had earlier projected India’s GDP growth rate to be 7.2 per cent for 2022-23.

Upwards and Onwards!

India becomes the world’s fastest-growing economy with a GDP growth rate of 8.7%. #IndiaBouncesBack pic.twitter.com/kbRXG3sZ4N

— MyGovIndia (@mygovindia) May 31, 2022

FISCAL DEFICIT ESTIMATED AT 6.71 Per Cent

According to the data released by the government, the Fiscal deficit for 2021-22 worked out to be 6.71 per cent of the gross domestic product (GDP) which is lower than 6.9 per cent projected by the Finance Ministry in the revised Budget Estimates, according to government data released on Tuesday.

Unveiling the revenue-expenditure data of the Union government for 2020-21, the Controller General of Accounts (CGA) said that the fiscal deficit in the absolute terms was be Rs 15,86,537 crore (provisional).

The revenue deficit at the end of 2021-22 was 4.37 per cent.

For the last financial year, the government had initially pegged the fiscal deficit at 6.8 per cent of the GDP in the budget presented in February 2021.

The government in the revised estimates in the Budget for 2022-23 forecast a higher fiscal deficit of 6.9 per cent of the GDP or Rs 15,91,089 crore for the fiscal ended in March.