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sharp drop in growth rate

sharp drop in growth rate

New Delhi. In the last quarter of the financial year 2021-22 i.e. from January to March 2022, there has been a big decline in the pace of GDP. According to the data released on Tuesday, the growth rate in the last quarter of the last financial year was 4.1 percent, which is 1.3 percent less than the growth rate of the previous quarter i.e. October-December 2021. The growth rate in the third quarter of the last financial year was 5.4 per cent. The growth rate in that quarter was high due to the festive season.

However, after a growth rate of 4.1 per cent in the last quarter, the growth rate for the full financial year stood at 8.7 per cent. After two years of corona epidemic, the economy seems to be getting back on track with this high growth rate. However, the growth rate of more than eight percent is because the country’s growth rate was negative in the preceding financial year i.e. 2020-21. GDP declined by 7.3 percent. Due to this negative base, the growth rate is visible.

The growth rate generally declines after the festive season. Apart from this, due to the Omicron variant at the beginning of the year, there was a third wave of corona and then lockdown had to be imposed in many places. The growth rate is said to be affected due to restrictions imposed by the Omicron variant, shortfall in global supply and high input costs. Apart from this, there was also a reason that war broke out between Russia and Ukraine in February this year. This also led to a large increase in the price of many products.

According to the data released by the National Statistical Office, NSO, there was a growth of 2.5 percent in the GDP in the same period from January to March of the financial year 2020-21. On that basis, if we look at the last quarter’s growth rate of 4.1 percent, then it is not much. However, according to official data, the GDP rate for the full year 2021-22 stood at 8.7 percent. However, earlier the growth rate was estimated to be around nine per cent.

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