The Indian economy has grown by 8.7 percent in the 2021-22 fiscal year against a 6.6 percent contraction in the previous fiscal, official data revealed on Tuesday. A poll conducted by CNBC-TV18 got the full-year expectation bang on at 8.7 percent.

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The FY22 gross value added (GVA) has come in at 8.1 percent versus a CNBC-TV18 poll reading of 8 percent.

The government data released shows that India grew at 4.1 percent in the fourth quarter of FY22 which has also met the CNBC-TV18 poll bang on. A year ago, the reading had come in at 2.5 percent.

Sajjid Chinoy, Chief India Economist at JPMorgan believes that India's spending patterns are still below COVID-19 pandemic levels.

"It's not clear how much savings there is at the bottom of the pyramid. You can see some of these headwinds in the RBIs Consumer Confidence Survey - this is admittedly an urban survey - but when households are asked where will your spending patterns be, two years after the pandemic, they're still much below where we were pre pandemic. So, there is going to be a squeeze everywhere, I guess the key is going to be job creation," he said.

Agriculture growth has come in at 3 percent versus 3.3 percent a year ago and in-line with the CNBC-TV18 poll.

A snapshot of the Q$FY22 GDP reading

Fiscal deficit reading

The fiscal deficit for the 2021-22 financial year is 6.7 percent of the GDP, less than the Finance Ministry's revised Budget estimate projection of 6.9 percent.

The revenue gap for FY22 was recorded at Rs 10.33 lakh crore, close to the Ministry's Budget estimate of Rs10.89 lakh crore.

The March fiscal deficit dropped to Rs 2.7 lakh crore, compared to Rs 4.13 lakh in the year-ago period.

Sudipto Mundle, Distinguished Fellow at National Council of Applied Economic Research, is not too worried about the fiscal deficit target.

"A little bit of slippage on the fiscal deficit would not be a problem but they should really try and hold on to the capital expenditure because the revival of the investment cycle is just at its early stages. And it's quite important to maintain that subject always to the fact that priority has to be now inflation control," he explained.

(Edited by : Abhishek Jha)

First Published:May 31, 2022 5:44 PM IST