GDP growth slowed down due to rising inflation and third wave of pandemic: Experts
GDP growth slowed down due to the pandemic
The gross domestic product (GDP) growth rate in the January-March 2022 quarter was 4.1 percent, which is the lowest in the entire financial year. At the same time, GDP growth in the year 2021-22 has been 8.7 percent, which is less than the estimate.
The main reason for the country’s economic growth rate to remain at a low level of 4.1 percent in the fourth quarter of the financial year 2021-22.covid) and commodity prices are up. Experts have said this. According to official data released on Tuesday, the gross domestic product (GDP) growth rate was 4.1 percent in the January-March 2022 quarter, which is the lowest in the entire financial year. At the same time, the GDP growth in the year 2021-22 has been 8.7 percent. This has also been lower than the previous estimate of 8.9 percent. in the December quarter GDP growth ,GDP Growth) was 5.4 percent. If the experts are to be believed, both these factors are affecting the countries around the world and the economy of India.Economy) is much better than many countries around the world.
What is expert opinion
V Anantha Nageswaran, Chief Economic Adviser to the government said, ‘The provisional estimate of real GDP in the financial year 2021-22 is higher than the pre-Covid level, which establishes that the economic recovery is complete’. He also said that there is no risk of high inflation with slowdown in economic growth for India. He said that the economy is in a better position than other countries. Rating agency Icra’s chief economist Aditi Nayar said that a lower GDP growth rate in the fourth quarter was inevitable as the third wave of Kovid at the same time disrupted connectivity-based services and increased commodity prices. Apart from this, there was also the effect of not being adverse to the base effect. Nair said that surprisingly, the services sector played the most important role in the fourth quarter with GVA growth of 3.9 per cent. Apart from this, due to increase in public expenditure, the growth in public administration, defense and other services was fast.
Effect of inflation on everyone, recovery in Indian economy
According to Deloitte India economist Rumki Mazumdar, the difference between real GDP and GDP at current prices shows that inflation has been a persistent problem and the economy has been battling the challenge of rising prices for a long time. Majumdar said, “Global investors have pulled out capital from all emerging markets including India. This led to a fall in the value of the currency and an increase in the import bill. Colliers India Chief Executive Officer (India) Ramesh Nair said that the Indian economy has made a great comeback in the year 2020-21, recovering from the decline of 6.6 percent. He said, ‘It shows that the economy has now come out of the clutches of the epidemic and is on the path of revival. DK Srivastava, Chief Policy Adviser, EY India, said the GDP data released by NSO confirms that the performance of all segments has reached pre-pandemic levels. However, the economic outlook for the current financial year looks bleak. Analysts say that due to the Russia-Ukraine crisis, crude oil is again going towards $ 120 per barrel.
