The Indian economy is estimated to grow at 4.4 percent in the third quarter of 2022-23, against 11.2 percent in the year-ago period, the National Statistical Office (NSO) said on Tuesday, February 28.

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The NSO has pegged the country's growth at 7 percent for 2022-23. Further, the NSO revised the GDP growth for 2021-22 to 9.1 percent against the earlier estimate of 8.7 percent. The slowdown is mainly due to the poor performance of the manufacturing sector.

"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 percent compared to 9.1 percent in 2021-22," the government said in a press release.

"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 percent. 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 percent," the NSO statement said.

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"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 percent during 2021-22 as compared to a contraction of 5.8 percent during 2020-21," it stated.

As per the first advance estimates, which were released last month, the GDP growth was pegged at 7 percent in 2022-23.

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

The national accounts data showed that the farm sector gross value added (GVA) has grown by 3.7 percent in the third quarter compared to a growth of 2.2 percent a year ago. The mining and quarrying sector grew at 3.7 percent compared to 5.4 percent a year ago.

The construction sector has grown by 8.4 percent in the quarter compared to 0.2 percent growth a year ago. The electricity, gas, water supply and other utility services segment has grown by 8.2 percent compared to 6 percent growth a year ago.

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GVA growth in the services sector -- trade, hotel, transport, communication and services related to broadcasting -- was 9.7 percent during the third quarter against 9.2 percent. Financial, real estate and professional services grew by 5.8 percent in the third quarter over 4.3 percent earlier.

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

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 percent during 2021-22 as against a contraction of 3 percent in the previous year, it stated.

Per capita income or per capita net national income at current prices is estimated at Rs 1,27,065 and Rs 1,48,524 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 percent during 2021-22 as against 27.9 percent 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 percent and 40.5 percent respectively in 2021-22.

The rate of GCF to GDP at constant (2011-12) prices was 31.7 percent in 2020-21 and 35.5 percent 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.

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

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

The RBI had projected the real GDP growth for 2022-23 at 6.8 percent, with the third quarter and fourth quarter growth at 4.4 percent and 4.2 percent, respectively. It had trimmed the growth projection for 2022-23 for the third time in December last year.

The Asian Development Bank (ADB) has projected the Indian economy to expand by 7 percent while the International Monetary Fund (IMF) has pegged the growth at 6.8 percent in 2022-23.

(Edited by : Shoma Bhattacharjee)

First Published:Feb 28, 2023 6:01 PM IST