India’s GDP grew by 8.7% in FY22 after 6.6% contraction previous fiscal

India’s economy or GDP grew by 4.1 per cent in the fourth quarter of 2021-22, pushing up the annual growth rate to 8.7 per cent, official data 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.

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 gross domestic product (GDP) had expanded by 2.5 per cent in the corresponding January-March period of 2020-21, according to data released by the National Statistical Office (NSO).

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.

Rising global commodity prices have sparked concern among policymakers, with the Reserve of India (RBI) announcing its first interest rate hike in nearly four years earlier this month.

India more than 80 per cent of its crude oil and the cost of meeting domestic fuel demand has soared since Russia’s February invasion of Ukraine. India is also the world’s largest importer of edible oils, prices of which are at record highs since the conflict began.

Prime Minister Narendra Modi’s government earlier this month announced tax breaks to offset higher food and petrol costs.

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.

(With inputs from PTI, AFP)