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GDP numbers signal uneven recovery; need to ensure external headwinds do not outweigh domestic tailwinds : ASSOCHAM

New Delhi, :  The GDP numbers for the third quarter and the FY’22 signal uneven economic recovery in the aftermath of the Omicron variant of Covid-19 and other challenges like rising energy prices, ASSOCHAM has said.  

”While the spread of Covid 19 is waning fast and easing of restrictions on economic activities should be speeding the pace of recovery, the challenges of the geo-political situation could weigh on the future trendline. So, the real challenge is how not to allow external headwinds to  outweigh the internal tailwinds like abating of the pandemic, prospects of bumper winter (Rabi) crop and return-to-work by most sectors of the economy,” ASSOCHAM Secretary General Mr Deepak Sood said in a statement. 

He said going forward, the shape of the ongoing geo-political situation would determine the direction of the global economy. ” India would be no exception. Sanctions on Russia by the US and several European nations are having an impact on prices of crude oil and metals. Need to keep a close watch on the fast changing situation ”, Mr Sood said.  

India’s GDP growth slowed down to 5.4 percent in October-December 2021 from 8.5 percent in the previous quarter, data released on February 28 by the Ministry of Statistics and Programme Implementation showed.

The statistics ministry also said India’s GDP will likely grow by 8.9 percent in FY22, down from its first advance estimate of 9.2 percent, released in early January 2022.

The GDP growth rate of 5.4 percent for the third quarter of FY22 is below expectations.