India’s GDP grew by 4.1 per cent in Q4 2021-22, pushing up the annual growth rate to 8.7 per cent, official data released by the government showed on Tuesday.
The data shows the GDP expanded by 8.7 per cent in 2021-22 against a 6.6 per cent contraction in 2020-21. The National Statistical Office (NSO), in its second advance estimate, had projected GDP growth during 2021-22 at 8.9 per cent
According to data released by the NSO, the gross domestic product (GDP) expanded by 2.5 per cent in the corresponding January-March period of 2020-21.
However, growth during that period was comparatively slower than the 5.4 per cent expansion in the previous October-December quarter of 2021-22.
Rising global commodity prices on the back of the Russia-Ukraine conflict have sparked concern among policymakers, with the Reserve of India (RBI) announcing its first interest rate hike in nearly four years.
India imports more than 80 per cent of its crude oil and is also the world’s largest importer of edible oils, skyrocketing prices and rising inflation are to prove major hurdles to GDP growth.
Consumer inflation hit 6.95 per cent in March, according to the Reserve Bank of India, which slashed its own yearly growth forecast to 7.2 per cent.
Prime Minister Narendra Modi’s government earlier this month announced tax breaks to offset higher food and petrol costs.