GDP growth in the third quarter was 5.4%: The growth of the country’s economy was less than the estimate, the effect can be seen in the fourth quarter

The country’s economy grew at a rate of 5.4% in the third quarter. This is less than all the estimates. However, the impact of rising crude oil prices and Ukraine-Russia conflict may be visible in the fourth quarter. The GDP growth in October-December 2020 was 0.4%.

Data released by NSO

In the data released by NSO, it has been said that the GDP growth between October and December was 5.4%. Earlier in the second quarter, it saw a growth of 8.4%. On the other hand, in the 9 months of April 2021 to January 2022, the government got Rs 15.47 lakh crore from tax while Rs 28.09 lakh crore was spent during this period.

The earlier estimate was 5.9%

NSO’s earlier estimate on GDP growth was 5.9%. It said that the size of the country’s economy could be Rs 147.72 lakh crore during 2021-22. That is, growth will be seen at the rate of 8.9%. It had a decline of 6.6% in 2021-21. According to this, the nominal GDP growth is estimated at Rs 236.44 lakh crore according to the current price. It was Rs 198.01 lakh crore in 2020-21.

The total GDP for the third quarter is estimated at Rs 38.22 lakh crore as against Rs 36.26 lakh crore in the same period a year ago.

Fiscal deficit Rs 1.8 lakh crore

Earlier, the fiscal deficit stood at Rs 1.8 lakh crore in January as against Rs 75,500 crore in the same month a year ago. Fiscal deficit refers to the reduction in income relative to the expenditure of the government. During April 2021 to January 2022, a total of Rs 15.47 lakh crore has been received by the government from tax. While the total expenditure during the same period stood at Rs 28.09 lakh crore.

Growth of 8 major industries was 11.6%

Talking about the growth of 8 major industries, it has grown by 11.6% during April to January, which was a decline of 8.6% during the same period a year ago. Talking about January only, it has shown an increase of 3.7% which was 4.1% in December 2021.

GDP growth rate estimated at 7.8% in 2022-23

The Reserve Bank of India (RBI) had projected a GDP growth rate of 7.8% in 2022-23. This is significantly lower than the expected 9.2% for 2021-22. SBI’s report said that the country’s GDP may grow at the rate of 5.8% in the third quarter.

Expected growth of 11.1% in the next year

By the way, in the first revised estimate for the financial year 2022-23, the GDP growth was fixed at 11.1%. Regarding real GDP growth growth, it is expected that it can increase by 8 to 8.5%. If crude oil prices do not come down to $70-75 per barrel, then it is likely to fall further. According to the National Statistical Office (NSO), the total real GDP can be Rs 147.54 lakh crore in 2021-22. That is, it is expected to grow at the rate of 9.2%. Barclays had said that GDP could be 6.6% in the third quarter.

What is GDP?

Gross Domestic Product (GDP) is the total value of all goods and services produced in a country in a given year. GDP is the largest measure of economic development of a country. Higher GDP means that the country’s economic growth is increasing, the economy is creating more jobs. It also shows which sector is developing and which sector is lagging behind economically.

Who is responsible for the fluctuation of GDP

There are four important engines to reduce or increase GDP. The first is you and me. The amount you spend contributes to our economy. The second is the business growth of the private sector. It contributes 32% to GDP. The third is government spending.

It means how much the government is spending in producing goods and services. It contributes 11% to GDP. And the fourth is note demand. For this, India’s total exports are subtracted from the total imports. Since India has more imports than exports, its impact is only negative on GPD.