India’s real GDP moderates to 4.1% y/y in Q1 2022 (Q4 FY2022)

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, which was presented during the Budget for FY2023. Heightened uncertainty and global supply shocks have hampered economic growth in Q1 2022 and continue to pose downside risks to growth in the current quarter as well.

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

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.

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Further data and analysis on India’s economy are available on the CEIC India Economy in a Snapshot – Q2 2022 report.