Indian economy grew at 8.7 per cent in FY22, outpaces China

The Indian economy grew at 8.7 per cent, according to the National Statistical Office (NSO) data released on Tuesday. The Gross Domestic Product (GDP) growth was estimated at 8.7 per cent in the financial year 2021-22 against a contraction of 6.6 per cent in the previous fiscal. However, growth in the January-March period was slower than the 5.4 per cent expansion in the previous October-December quarter of 2021-22. The NSO, in its second advance estimate, had projected GDP growth during 2021-22 at 8.9 per cent. China had registered an economic growth of 4.8 per cent in the first three months of 2022. Meanwhile, the combined Index of Eight Core Industries stood at 143.2 in April 2022, which is an increase of 8.4 per cent as compared to the Index of April 2021.

The GDP for 2021-22 though is lesser than the 8.9 per cent growth estimated by the Ministry of Statistics and Programme Implementation (MoSPI). The 8.7 per cent growth also falls way short of the Reserve Bank of India's (RBI) estimation of  9.5 per cent of GDP growth for 2021-22. 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.