New Delhi, May 31 (.) .- India’s gross domestic product (GDP) is forecast to grow by 8.7% in the financial year 2021-2022 ending March, 15% higher than the previous period. The Indian economy shrank due to the second wave of epidemics.
“GDP growth in 2021-22 is projected at 8.7%, compared to a 6.6% contraction in 2020-21,” the Federal Statistics Office (CSO) said in a statement on Tuesday.
This expansion of the Indian economy will be the largest since 1999 and the fourth largest in Asia in the last 60 years.
The basis for this growth is the reactivation of trade, hospitality and transportation related services, which increased by 11.1% in the 2021-22 financial year compared to the 20.2% contraction affected by the epidemic last year.
Other key sectors, such as public administration, defense and other services, grew by 12.6% compared to a decline of 5.5% in 2020-21; And output, up 11.5% from -0.6% in the previous fiscal year, the CSO said in a statement.
However, this GDP increase is less than the latest estimates made in India.
The Reserve Bank of India (RBI) has forecast GDP growth of 9.5%, while the Ministry of Statistics of India has downgraded its estimates to 8.9%.
The third wave of epidemics caused by the Omigran variant, which peaked in India in mid-January, and the inflationary pressures resulting from the conflict in Ukraine are two main reasons for this small drop in GDP. To expectations.
Pulled by these setbacks, growth fell to 4.1% in the last quarter of the fiscal year, the smallest increase of the year, below RBI forecasts of 6.1%.
To prevent this inflation cycle, the RBI announced in early May that it would raise interest rates from 4% to 4.40%, the key indicator for the first time in two years.
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