- February 28, 2022
- Posted by: admin
- Category: Daily News
- India’s economy is growing slower than previously forecast after the latest wave of coronavirus cases earlier hampered activity and as risks mount from higher prices of commodities amid Russia’s invasion of Ukraine.
- The Indian economy grew by 5.4% y/y in 4Q21, data from the Ministry Of Statistics And Programme Implementation showed. India’s gross domestic product (GDP) had grown by 8.4% in 3Q21.
- The dip in growth momentum may be attributed to the fading base effect. The government estimates the growth in GDP during FY22 at 8.9% as compared to a contraction of 6.6% in FY21.
- The loss of momentum comes amid disruptions from waves of virus outbreaks and lingering external risks, most notably from high commodity prices that are being exacerbated by the Russia-Ukraine crisis.
- A slower pace of expansion could hurt investment and job creation, testing fiscal and monetary policies that have remained loose despite rising inflation pressures.