The growth rate data for the fourth quarter (January-March) of the financial year 2021-22 in the country has been released on Tuesday.
According to the data released by the National Statistical Office (NSO), the GDP growth rate in the fourth quarter stood at 4.1 percent.
Similarly, if we talk about the whole financial year, it has been 8.7 percent. Let us inform that in the last financial year, the government had estimated the economy to grow at the rate of 8.9 percent.
The total value of production done in a country within a given period of time is called GDP. Understand in simple language, if the value of all the goods and services made in the country, from needle to airplane, is added, then GDP will be found.
The fourth quarter growth rate has been the lowest in the year – NSO
According to NSO, the fourth quarter growth rate in the country has been the lowest in the entire financial year. The rate was 20.1 percent in the first quarter (April-June), 8.4 percent in the second quarter (July-September) and 5.4 percent in the third quarter (October-December).
In such a situation, the growth rate of 4.1 percent in the fourth quarter has been lower by 1.3 percent compared to the previous quarter.
However, there are signs of a big jump in the country’s growth rate in the current financial year.
What has been the reason for the decline in growth rate?
The coronavirus pandemic and global factors are believed to be the main reason for the decline in the fourth quarter’s growth rate.
In early February, the third wave of the epidemic caused by the Omicron variant of the corona virus hit the country and economic activity came to a standstill due to restrictions.
Similarly, the price increase was due to the ongoing war between Russia and Ukraine. Due to this, there has been a slowdown in economic growth.
GDP has been better than the financial year 2020-21
According to the data released by the National Statistical Office (NSO), India’s GDP for the fiscal year 2021-22 stood at 8.7 percent, which is a sign of the economy getting back on track compared to the previous year. The country’s GDP declined by 7.3 percent in the financial year 2020-21, but it has increased last year.
In such a situation, it can be said that the country’s economy is gaining momentum while recovering from the effects of the Corona epidemic.
Increase in private final consumption expenditure
As per the data, private final consumption expenditure grew by 1.8 per cent in the fourth quarter of the last fiscal. Similarly, the indicator of investment activity i.e. gross fixed capital formation has increased by 5.1 percent.
Apart from this, the core sector has seen a growth of 8.4 percent in April. The output of coal, power, refinery products, fertilizer, cement and natural gas industries increased in April 2022 compared to the same period last year.
Fiscal deficit also decreased
The fiscal deficit has also come down in the financial year 2021-22. This deficit stood at 6.71 per cent of the total GDP, which is lower than the revised budget estimate of 6.9 per cent.
The government had earlier projected the deficit to be 6.8 per cent, but increased it to 6.9 per cent in time.
According to the data released by the Controller General of Accounts, the fiscal deficit in real terms in the last financial year stood at Rs 15,86,537 crore.