Ahead of budget, govt revises FY21 GDP growth to -6.6% from -7.3%

Jan 31, 2022

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NEW DELHI: A day earlier than presentation of Union Price range 2022, the federal government on Monday revised gross home product (GDP) progress for monetary 12 months 2021-22.
In an official launch, the Nationwide Statistics Organisation (NSO) stated Indian economic system contracted by 6.6 per cent in 2020-21 as towards a contraction of seven.3 per cent that was confirmed in provisional estimates.
“Actual GDP or GDP at fixed (2011-12) costs for the years 2020-21 and 2019-20 stands at Rs 135.58 lakh crore and Rs 145.16 lakh crore, respectively, displaying a contraction of 6.6 per cent throughout 2020-21 as in comparison with progress of three.7 per cent throughout 2019-20,” the NSO stated within the revised nationwide account knowledge.

The announcement comes simply minutes after the Centre offered Financial Survey for monetary 12 months 2021-22.
Full protection: Union Price range 2022-23
Principal financial adviser Sanjeev Sanyal stated that India will retain its tag of the world’s fastest-growing main economic system, saying it has the fiscal house to do extra to help the economic system and is nicely positioned to satisfy the long run challenges.
The economic system had skilled its first technical recession in FY21 as a consequence of two again to again quarters of detrimental GDP progress. Nonetheless, with administration of Covid vaccines and decline in instances, the federal government began to ease restrictions and enterprise exercise picked up tempo.
In consequence, India posted finest ever 20.1 per cent GDP progress in first quarter of FY22, primarily as a consequence of low base impact. Thereafter, the financial restoration has maintained a gradual tempo.
Nonetheless, the onset of Omicron variant does usher in some uncertainty however the affect is but to be seen.
Whereas presenting the Financial Survey, Sanyal stated that the Indian economic system has crossed its pre-pandemic ranges and is nicely positioned to tackle the challenges of 2022-23.
The primary superior estimates of GDP launched by the federal government earlier this month projected India’s economic system to develop by 9.2 per cent in FY22.



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