Price pressures subdue India's Q3FY22 GDP growth sequentially, lowers FY22 forecast

Commodity cost pressure, as well as high base effect, subdued India's Q3FY22 GDP growth rate on a sequential basis, thereby, lowering the 2021-22 growth forecast to 8.9 per cent.

Besides, a marginal rise in manufacturing and a contraction in construction activity flattened out growth in Q3FY22.

National Statistical Office (NSO) data showed that India's Q3FY22 GDP growth rate stood to 5.4 per cent on a year-on-year basis.

The Q3FY22 GDP, at constant prices of 2011-12, is estimated at Rs 38.22 lakh crore, as against Rs 36.26 lakh crore during the corresponding period of 2020-21. On a YoY basis, India's GDP growth rate had inched up by 0.7 per cent during the corresponding period of the previous fiscal.

However, on a sequential basis, the GDP growth rate during Q3FY22 was slower than the rise of 8.5 per cent recorded for Q2FY22 and 20.3 per cent in Q1FY22.

Further, the data estimated a rise in GVA at Basic Prices at constant (2011-12) prices in Q3 2021-22 to Rs 35.26 lakh crore, as against Rs 33.66 lakh crore in Q3 2020-21, showing a growth of 4.7 per cent. The GVA includes taxes, but excludes subsidies.