India's GDP For FY 2021-22 At 8.7%, Q4 GDP Growth At 4.1%

India's Gross Domestic Product (GDP) for FY 2021-22 came in at 8.7% as compared to 7.30% in 2020-21. According to the data released by the National Statistical Office, India's GDP for fourth quarter ended on March 31st was at 4.1%. The GDP was largely in line with estimates.

"Real GDP or Gross Domestic Product (GDP) at Constant (2011-12) Prices in the year 2021-22 is estimated to attain a level of ₹ 147.36 lakh crore, as against the First Revised Estimate of ₹ 135.58 lakh crore for the year 2020-21, released on 31.01.2022. The growth in GDP during 2021-22 is estimated at 8.7 percent as compared to a contraction of 6.6 percent in 2020-21," a government release stated.

What were the fourth quarter GDP estimates from analysts?

Several analysts have projected the India's GDP data amid surging prices and growing geo-political tensions. SBI Research has projected GDP growth for FY22 at 8.5% and for Q4FY22 at 2.7%. SBI Research said, "We are projecting GDP growth for FY22 at 8.5 per cent and Q4 FY22 at 2.7 per cent. We, however, believe that the GDP projection for Q4 FY22 is clouded by significant uncertainties. For example, even a 1 per cent downward revision in Q1 GDP estimates of FY22 from 20.3 per cent, all other things remaining unchanged could push Q4 GDP growth to 3.8 per cent," it said.
Leading credit rating agency ICRA expects that the year-on-year (YoY) growth in GDP may have moderated to 3.5 in Q4, FY 2022 from 5.4 registered in the Q3 of FY 2022 as a result of surging commodity prices, fall in wheat yields and setbacks in recovery of contact-intensive services. "We expect both agriculture and industry to post a sub-1 per cent GVA (gross value added) growth in Q4 FY2022, whereas services growth is expected to print at around 5.4 per cent in that quarter," added ICRA.

According to Reuters, India's GDP growth is likely to remain at 4% for January to March quarter, according to Reuters poll of 46 economists and it has come down from 5.4% growth registered in Q4 FY2021.

What is GDP?

Gross Domestic Product or GDP is the final value of the goods and services produced within the geographic boundaries of a nation during a particular period of time, generally a year. The GDP growth rate is a key indicator of the economic performance of a nation. GDP is one of the most significant ways of showing how effectively or badly an economy is doing.