WEBINAR ON DEMAND

India’s gross domestic product in real terms grew by 4.1% in Q1 2022, or Q4 FY2022 (quarter ending in March 2022). This brings India’s total GDP growth for FY2022 to 8.7% y/y, 0.2pp below the government’s estimate of 8.9% y/y, that was presented during the Budget for FY2023. Heightened uncertainty and global supply shocks have hampered economic growth in Q1 2022 and continues to pose downside risks to growth in the current quarter as well. At the same time, it signifies an economic rebound from a 6.6% contraction in FY2021. 

During the quarter, GDP growth was underpinned by domestic demand. Private consumption increased by 1.8% y/y, government consumption by 4.8% y/y and gross fixed capital formation (investment) by 5.1% y/y. As for foreign trade, however, although goods and services exports were up by 16.85% y/y, imports rose by 18% y/y.  Economic recovery continued across most sectors, with manufacturing and services gaining momentum.