India's Third Quarter GDP Grows At 5.4%, Below Estimates

The country's gross domestic product (GDP) grew at 5.4 per cent in the third quarter of fiscal 2022, according to government data released today. This was way below what estimates from analysts had suggested, which was closer to 6%.

"GDP at Constant (2011-12) Prices in Q3 of 2021-22 is estimated at Rs 38.22 lakh crore, as against Rs 36.26 lakh crore in Q3 of 2020-21, showing a growth of 5.4 percent," a release by the government stated.

The country's economy expanded by 8.4 per cent in the second quarter of 2021-22, to cross pre-pandemic levels. However, the GDP growth in July-September period was slower than the 20.1 per cent expansion in the previous quarter.

The National Statistical Office declared the GDP estimates for Q3 FY 2021- 22 today. An SBI research report had estimated the GDP at around that 5.8% mark, while most analysts had forecast GDP around the 6% mark.

The RBI in its monetary policy meeting earlier this month had said, Looking ahead, domestic growth drivers are gradually improving. Considering all these factors, real GDP growth is projected at 7.8 per cent for 2022-23 with Q1:2022-23 at 17.2 per cent; Q2 at 7.0 per cent; Q3 at 4.3 per cent; and Q4 at 4.5 per cent.

The next release of quarterly GDP estimates for the quarter January-March, 2022 (Q4 of 2021-22) and Provisional Annual Estimates for the year 2021-22 will be on 31.05.2022.