India’s GDP Growth Slows to 4.1% in March Quarter; Economy Grew at 8.7% in FY22

India’s economy grew 4.1% during the January-March period in real or inflation-adjusted terms, the slowest pace in a year, the National Statistical Office’s data released on Tuesday showed.

Asia’s third-largest economy rebounded from a pandemic-induced recession to grow 8.7% in 2021-22, compared to a contraction of 6.6% in 2020-21, but this is a tad lower than 8.8% estimated in January, according to the latest data.

The January-March period is the third straight quarter of slowing growth as India battles a globally synchronized outbreak of high inflation. The latest GDP estimates for the fourth quarter of fiscal year 2021-22 compares to a growth rate of 5.4% in the third quarter, 8.5% in the second quarter and 20.3% in the first quarter.

GDP is the widest measure of economic activity and represents the value of all goods and services produced in a given period.

Lower global growth is also weighing in on India, as the Black Sea conflict slows nascent recovery from the pandemic. The war has exacerbated supply disruptions and splintered international trade. Higher interest rates and global instability have spurred flight of capital from the country to safe havens of dollar-denominated assets.