+
Economic growth reduces to 5.4% from the expected 8.9%: NSO
ECONOMY & POLICY

Economic growth reduces to 5.4% from the expected 8.9%: NSO

According to the National Statistical Office (NSO), the Indian economy grew at 5.4% in the third quarter (Q3) of FY22.

The statistics office reduced the overall expected growth for FY22 to 8.9% from 9.2%.

According to the experts, the third wave of the pandemic on contact-intensive services sectors in the fourth quarter (Q4) and the spike in commodity prices due to the Russia-Ukraine war may have reduced the Gross Domestic Product (GDP) growth in FY22.

The statistics office data show services sector grew at a robust 8.2%, while the manufacturing sector remained almost static, hit by the shortage of semiconductors. The labour-intensive construction sector contracted 2.8%.

Chief economic adviser at Brickwork Ratings, Govinda Rao, said to achieve 8.9% growth, Q4 GDP had to grow 4.8%.

Retail oil price revisions might resume early March after the Assembly elections are over.

The Reserve Bank of India (RBI) had estimated a 10% price hike of the Indian crude basket could increase the consumer price index by 20 basis points.

The private consumption remained robust in Q3, showing an investment revival in the second quarter (Q2) petered out while weak government expenditure declined growth. However, government expenditure may significantly pick up in the March quarter.

The Controller General of Accounts data showed revenue spending increased by 30%, even as capital spending was 6% lower than in January last year. The second advance estimates the share of private consumption expenditure in FY22 to be 1.2% bigger than in FY20. As a result, the size of all demand-side drivers of GDP in FY22 is comparatively bigger than FY20.

According to data, eight infrastructure sectors witnessed growth, at the rate of 3.7% in January against 4.1% in December.

Image Source

According to the National Statistical Office (NSO), the Indian economy grew at 5.4% in the third quarter (Q3) of FY22. The statistics office reduced the overall expected growth for FY22 to 8.9% from 9.2%. According to the experts, the third wave of the pandemic on contact-intensive services sectors in the fourth quarter (Q4) and the spike in commodity prices due to the Russia-Ukraine war may have reduced the Gross Domestic Product (GDP) growth in FY22. The statistics office data show services sector grew at a robust 8.2%, while the manufacturing sector remained almost static, hit by the shortage of semiconductors. The labour-intensive construction sector contracted 2.8%. Chief economic adviser at Brickwork Ratings, Govinda Rao, said to achieve 8.9% growth, Q4 GDP had to grow 4.8%. Retail oil price revisions might resume early March after the Assembly elections are over. The Reserve Bank of India (RBI) had estimated a 10% price hike of the Indian crude basket could increase the consumer price index by 20 basis points. The private consumption remained robust in Q3, showing an investment revival in the second quarter (Q2) petered out while weak government expenditure declined growth. However, government expenditure may significantly pick up in the March quarter. The Controller General of Accounts data showed revenue spending increased by 30%, even as capital spending was 6% lower than in January last year. The second advance estimates the share of private consumption expenditure in FY22 to be 1.2% bigger than in FY20. As a result, the size of all demand-side drivers of GDP in FY22 is comparatively bigger than FY20. According to data, eight infrastructure sectors witnessed growth, at the rate of 3.7% in January against 4.1% in December. Image Source

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code