Economic growth reduces to 5.4% from the expected 8.9%: NSO
ECONOMY & POLICY

Economic growth reduces to 5.4% from the expected 8.9%: NSO

According to the National Statistical Office (NSO), the Indian economy grew at 5.4% in the third quarter (Q3) of FY22.

The statistics office reduced the overall expected growth for FY22 to 8.9% from 9.2%.

According to the experts, the third wave of the pandemic on contact-intensive services sectors in the fourth quarter (Q4) and the spike in commodity prices due to the Russia-Ukraine war may have reduced the Gross Domestic Product (GDP) growth in FY22.

The statistics office data show services sector grew at a robust 8.2%, while the manufacturing sector remained almost static, hit by the shortage of semiconductors. The labour-intensive construction sector contracted 2.8%.

Chief economic adviser at Brickwork Ratings, Govinda Rao, said to achieve 8.9% growth, Q4 GDP had to grow 4.8%.

Retail oil price revisions might resume early March after the Assembly elections are over.

The Reserve Bank of India (RBI) had estimated a 10% price hike of the Indian crude basket could increase the consumer price index by 20 basis points.

The private consumption remained robust in Q3, showing an investment revival in the second quarter (Q2) petered out while weak government expenditure declined growth. However, government expenditure may significantly pick up in the March quarter.

The Controller General of Accounts data showed revenue spending increased by 30%, even as capital spending was 6% lower than in January last year. The second advance estimates the share of private consumption expenditure in FY22 to be 1.2% bigger than in FY20. As a result, the size of all demand-side drivers of GDP in FY22 is comparatively bigger than FY20.

According to data, eight infrastructure sectors witnessed growth, at the rate of 3.7% in January against 4.1% in December.

Image Source

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

According to the National Statistical Office (NSO), the Indian economy grew at 5.4% in the third quarter (Q3) of FY22. The statistics office reduced the overall expected growth for FY22 to 8.9% from 9.2%. According to the experts, the third wave of the pandemic on contact-intensive services sectors in the fourth quarter (Q4) and the spike in commodity prices due to the Russia-Ukraine war may have reduced the Gross Domestic Product (GDP) growth in FY22. The statistics office data show services sector grew at a robust 8.2%, while the manufacturing sector remained almost static, hit by the shortage of semiconductors. The labour-intensive construction sector contracted 2.8%. Chief economic adviser at Brickwork Ratings, Govinda Rao, said to achieve 8.9% growth, Q4 GDP had to grow 4.8%. Retail oil price revisions might resume early March after the Assembly elections are over. The Reserve Bank of India (RBI) had estimated a 10% price hike of the Indian crude basket could increase the consumer price index by 20 basis points. The private consumption remained robust in Q3, showing an investment revival in the second quarter (Q2) petered out while weak government expenditure declined growth. However, government expenditure may significantly pick up in the March quarter. The Controller General of Accounts data showed revenue spending increased by 30%, even as capital spending was 6% lower than in January last year. The second advance estimates the share of private consumption expenditure in FY22 to be 1.2% bigger than in FY20. As a result, the size of all demand-side drivers of GDP in FY22 is comparatively bigger than FY20. According to data, eight infrastructure sectors witnessed growth, at the rate of 3.7% in January against 4.1% in December. Image Source

Next Story
Infrastructure Transport

Design Flaw Stalls New Four-Lane Bridge Project in Jamshedpur

The construction of a four-lane bridge between Litti Chowk and NH 33 has been delayed due to design concerns. Current work is limited to bush clearing near Mango, as engineers have identified alignment issues with the bridge. They noted that a portion of the design encroaches into the Subarnarekha River, according to Executive Engineer Deepak Sahay. In response, survey teams are working on revised plans. The state government has allocated Rs 440 million for the bridge's construction, with an additional Rs 330 million earmarked for land acquisition. Tata Steel has contributed 20-30 per cent o..

Next Story
Infrastructure Transport

Govt Proposes Plan for Strategic Paddar-Zanskar Road Construction

The Government has prepared a proposal for the construction of the Paddar-Zanskar road, which will establish an additional connection between Jammu and Ladakh. This project aims to enhance tourism, bolster local economies, and facilitate the movement of troops to the China and Pakistan borders in Ladakh. Officials indicated that the Union Ministry of Road, Transport and Highways is expected to undertake the project after conducting a detailed study of its route. The road’s construction was initially announced by Union Home Minister Amit Shah during a public rally in Paddar in September las..

Next Story
Infrastructure Transport

TN Govt Allocates Rs 8.04 Bllion to Boost 746 Rural Roads

MK Stalin, Chief Minister, Tamil Nadu, unveiled a major initiative aimed at constructing and maintaining an extensive network of roads in rural areas. The State government announced that the project, with an estimated cost of Rs 8.04 billion, is designed to enhance connectivity for Tamil Nadu's rural population, thereby narrowing the divide between urban and rural regions. A government release highlighted that the project involves the construction of 746 roads covering a total distance of 1,452.97 kilometre across 37 districts in the state. It added that the initiative is being financed thro..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000