While the Omicron variant of the coronavirus has hurt growth, India has managed to keep momentum intact, said the Chief Economic Advisor (CEA) of the country.
India’s GDP grew by 4.1% in the fourth quarter of FY22. Meanwhile, the overall growth recorded for the financial year 2021-22 is estimated at 8.7% as against the contraction of 6.6% in FY21. The nominal GDP grew by 19.5% in the financial year 2021-22.
The CEA, Dr Venkatraman Anantha Nageswaran, added that growth inflation challenges are universal. That said, India is in a much better place in terms of inflation as compared to other countries, he said.
“In the context of a developing countries, recession is rarely on the cards, it is almost always a question of growth slowing down,” opined Nageswaran.
He added that stagflationary risk in India is quite low as compared to other countries across the world.
In his comments post the release of GDP data, he pointed out that India is better placed than many other nations as the financial sector of the country is in better shape to support growth.
He also added that the chances of a recession in the country are very low, saying, “If asked to take a bet at this point of time, I would wholeheartedly bet against a recession.”
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The fluctuation in GDP numbers could be attributed to the impact of localised restrictions during the Omicron wave and high inflationary pressures hitting private consumption. The fears of the Omicron-led third wave resulted in disruption of economic recovery which was afoot.