India's growth slows to 4.4% in Dec quarter on manufacturing woes

India's economic growth decelerated to 4.4 per cent in the October-December quarter of this fiscal mainly due to a contraction in the manufacturing sector.

The GDP (Gross Domestic Product) growth was 11.2 per cent in October-December 2021 and 6.3 per cent in July-September 2022, showed the data released by the National Statistical Office (NSO) on Tuesday.

The manufacturing sector's output, as per the gross value added in the third quarter of this fiscal, contracted by 1.1 per cent compared to a growth of 1.3 per cent in the year-ago period.

The NSO also released the second advance estimate for the current fiscal and maintained its growth projection of 7 per cent as was estimated in the first advance estimate which was released in January.

"GDP at Constant (2011-12) Prices in Q3 2022-23 is estimated at Rs 40.19 lakh crore, as against Rs 38.51 lakh crore in Q3 2021-22, showing a growth of 4.4 per cent.

“GDP at Current Prices in Q3 2022-23 is estimated at Rs 69.38 lakh crore, as against Rs 62.39 lakh crore in Q3 2021-22, showing a growth of 11.2 per cent," the NSO statement said.

"Real GDP or GDP at Constant (2011-12) Prices in the year 2022-23 is estimated at Rs 159.71 lakh crore, as against the First Revised Estimates of GDP for the year 2021-22 of Rs 149.26 lakh crore.

“The growth in real GDP during 2022-23 is estimated at 7.0 per cent as compared to 9.1 per cent in 2021-22," the NSO said.

The NSO revised upward the GDP growth for 2021-22 to 9.1 per cent from 8.7 per cent estimated earlier.

The national accounts data showed that the farm sector gross value added (GVA) has grown by 3.7 per cent in the third quarter compared to a growth of 2.2 per cent a year ago.

The mining and quarrying sector grew at 3.7 per cent compared to 5.4 per cent a year ago.

The construction sector has grown by 8.4 per cent in the quarter compared to 0.2 per cent growth a year ago.

Electricity, gas, water supply and other utility services segment has grown by 8.2 per cent compared to 6 per cent growth a year ago.

GVA growth in the services sector -- trade, hotel, transport, communication and services related to broadcasting -- was 9.7 per cent during the third quarter against 9.2 per cent.

Financial, real estate and professional services grew by 5.8 per cent in the third quarter over 4.3 per cent earlier.

Public administration, defence and other services posted 2 per cent growth against 10.6 per cent in the third quarter of the last fiscal.

"Real GDP or GDP at constant (2011-12) prices for the years 2021-22 and 2020-21 stands at Rs 149.26 lakh crore and Rs 136.87 lakh crore, respectively, showing a growth of 9.1 per cent during 2021-22 as compared to a contraction of 5.8 per cent during 2020-21."

Nominal Net National Income (NNI) or NNI at current prices for the year 2021-22 stands at Rs 203.27 lakh crore as against Rs 172.23 lakh crore in 2020-21, showing a growth of 18 per cent during 2021-22 as against a contraction of 3 per cent in the previous year, it stated.

Per Capita Income or Per Capita Net National Income at current prices is estimated at Rs 127,065 and Rs 148,524 respectively for the years 2020-21 and 2021-22, it stated.

Gross Capital Formation (GCF) at current prices is estimated at Rs 73.62 lakh crore for the year 2021-22 as compared to Rs 55.27 lakh crore during 2020-21, it stated.

The rate of GCF to GDP is 31.4 per cent during 2021-22 as against 27.9 per cent in 2020-21.

The rates of capital formation in the years 2011-12 to 2019-20 and 2021-22 have been higher than the rate of saving because of positive net capital flow from RoW (rest of the world), it stated.

In terms of the share to the total GFCF (at current prices), the highest contributor is Non-Financial Corporations followed by the Household sector, the share of which stood at 44.1 per cent and 40.5 per cent respectively in 2021-22, it stated.

The rate of GCF to GDP at constant (2011-12) prices was 31.7 per cent in 2020-21 and 35.5 per cent in 2021-22, it stated.

Gross savings during 2021-22 are estimated at Rs 70.77 lakh crore against Rs 57.17 lakh crore during 2020-21, it stated.

Share of non-financial corporations, financial corporations, general government and household sectors in gross savings during 2021-22 stands at 35.3 per cent, 8.4 per cent, (-) 8.9 per cent and 65.3 per cent, respectively, it stated.

The rate of Gross Saving to GNDI (Gross National Disposable Income) for 2021-22 is estimated at 30.0 per cent as against 28.4 per cent for 2020-21, it stated.