The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation, said that in the fourth quarter of financial year ending March 2022, India’s GDP growth slowed to 4.1%, as compared to 5.4% in the previous quarter. The reason for this dip are the obvious international factors that include crude oil and other commodity prices that have sky-rocketed due to the Russia-Ukraine war.
The data also states that overall GDP growth of the country in the 2021-2022 year stood at 8.7%. This figure is higher than the 6.6% growth achieved in 2020-2021, but it still falls short of estimated figures. The NSO had predicted a growth of 8.9% and Reserve Bank of India’s (RBI) estimated growth of 9.5% for the year.
Industry experts say that this drop in economic growth reflects the uncertain international scenarios as well as domestic upheavals in the past several months. Wave of Omicron virus, disturbance of supply chains, Russia-Ukraine war affecting crude oil and other commodity prices as well as several countries banning export of goods and food products have all impacted the growth of economy in India.
As per estimates for the next year, experts believe that India will be able to maintain a growth-rate of somewhere between 7 and 7.5%. Although this is slower than the current year, all things considered, it will be seen as an impressive figure.