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Resource centre on India's rural distress
 
 

India's GDP growth further slows to 4.1 per cent in fourth quarter

-The Telegraph

Downward revision was expected as omicron variant and start of Russia-Ukraine war hit Q4: Economist

New Delhi: Growth in the fourth quarter of 2021-22 (January-March) slowed to a crawl at 4.1 per cent, reflecting just how enfeebled the economy had become because of weakening demand and a broad-based surge in prices that sent inflation to an eight-year high at 7.79 per cent in April.

The slowdown meant that the fourth quarter saw the lowest growth after 20.1 per cent in the first quarter (April-June 2021), 8.4 per cent in Q2 and 5.4 per cent in Q3.

During the fiscal year, GDP grew 8.7 per cent year-on-year compared to a contraction of 6.6 per cent in the previous — and propagandists for the Modi government were quick to trumpet this as the fastest growth in the past 17 years.

The statistical illusion is quickly busted when one compares the absolute real GDP figure with that in the pre-pandemic year of 2019-20.

The GDP in 2021-22 was estimated at Rs 147.36 lakh crore, just 1.5 per cent higher than the Rs 145.16 lakh crore achieved in 2019-20. The sobering truth is that the economy has just about overcome the negative impact of the pandemic.

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