The NSO’s latest provisional estimates of India’s GDP growth for Q4 and full-year 2021-22 are largely devoid of negative surprises. The topline numbers, which peg India’s real GDP growth at 8.7 per cent and nominal growth at 19.5 per cent for FY22 are unerringly close to the NSO’s second advance estimates in end-February. Real GDP growth of 4.1 per cent for Q4 FY22 has managed to beat the expectations of most private forecasters at 3.7-3.8 per cent. Weak demand due to Omicron and global supply chain disruptions due to the Ukraine war appear to have contributed to this slowdown. Two, India’s high nominal GDP growth for the first time in many years is supportive of healthy incomes and tax buoyancy, which can help the government deliver on its capex plans.

Source: The Hindu June 01, 2022 03:28 UTC