Question Description
Read the given passage and answer the questions that follow. Some words and phrases have been underlined for you to answer better.The lower-than-expected GDP numbers for the third quarter (Q3) of the ongoing fiscal, combined with some early indicators for the final quarter, confirm the fears that the third wave of the pandemic may have had a bigger impact on growth than was earlier expected. According to data released by the National Statistical Office on Monday, the GDP grew by 5.4 per cent during Q3 of 2021-22. For the full financial year, GDP growth is now estimated to hit 8.9 per cent, lower than the 9.2 per cent projected earlier. While this is not bad news – after all, the economy actually shrunk by 6.6 per cent in 2020-21 – the slower than expected growth rate poses a question mark over the Budget estimates. What is worrying is the sharp slowdown in growth momentum. GDP growth clocked a scorching 20.3 per cent in Q1 (April-June), fell sharply to 8.5 per cent in Q2 (July-September) and has fallen further.Sectoral data show up other worrying indicators. Construction, which not only carries significant weight in the economy, but also is a big generator of jobs, contracted by 2.8 per cent. Manufacturing growth was nearly stagnant at 0.2 per cent. Sectors like automobiles – a good indicator of consumer sentiment – are stagnating. The Q3 growth was disincentivised by the “relief rally” in private consumptions, as Covid-induced restrictions eased. While private final consumption grew 7 per cent in Q3, it is expected to drop to just 1.5 per cent in Q4 (January to March). The government’s capital expenditure also has slowed sharply, with gross fixed capital formation growing by just 2 per cent in Q3. This raises question marks over the government’s massive capital expenditure plans for 2022-23. That momentum could drop further as indicated by the slide in GST collections, which fell to 1.33 lakh crore in February 2022 from 1.40 lakh crore in January, although the Finance Ministry has pointed out that February is a shorter month.More worrying is the steady rise in inflation. Which has been at the top end of the RBI’s “comfort band” for months now. Overall retail (consumer inflation) is at 6 per cent for January, although separate indices compiled by the Labour Ministry for industrial workers and agriculture and farm workers came in at 5.8 and 5.5 per cent, respectively. Worryingly, food inflation is over 6.22 per cent, while the less-used Wholesale Price Index has been in double-digit territory for 10 months now. With the strife in Ukraine sending energy prices soaring, and sanctions adding to the existing supply chain disruptions, a number of sectors are likely to feel the hit in the coming months. The Centre and the RBI have their task cut out to maintain some sort of fiscal and monetary support for growth while ensuring that prices do not go out of control. A cut in fuel taxes – despite revenue implications – may be the only option to curb the impact of soaring oil prices. Further, the RBI will have to manage the rupee to ensure imports – essential for growth – do not get priced out of hand by a strengthening dollar.Q. Which of the following can be inferred from the first few lines of the passage?a)The pandemic has a significant impact on the growth estimates and the GDP numbersb)The capex of the government affects the GST collections evidentlyc)The government had expected the GDP numbers to fall in the third quarterd)The impact of the pandemic was perceived to be lethal but the estimates have been calminge)Both (a) and (d)Correct answer is option 'A'. Can you explain this answer? for Banking Exams 2024 is part of Banking Exams preparation. The Question and answers have been prepared according to the Banking Exams exam syllabus. Information about Read the given passage and answer the questions that follow. Some words and phrases have been underlined for you to answer better.The lower-than-expected GDP numbers for the third quarter (Q3) of the ongoing fiscal, combined with some early indicators for the final quarter, confirm the fears that the third wave of the pandemic may have had a bigger impact on growth than was earlier expected. According to data released by the National Statistical Office on Monday, the GDP grew by 5.4 per cent during Q3 of 2021-22. For the full financial year, GDP growth is now estimated to hit 8.9 per cent, lower than the 9.2 per cent projected earlier. While this is not bad news – after all, the economy actually shrunk by 6.6 per cent in 2020-21 – the slower than expected growth rate poses a question mark over the Budget estimates. What is worrying is the sharp slowdown in growth momentum. GDP growth clocked a scorching 20.3 per cent in Q1 (April-June), fell sharply to 8.5 per cent in Q2 (July-September) and has fallen further.Sectoral data show up other worrying indicators. Construction, which not only carries significant weight in the economy, but also is a big generator of jobs, contracted by 2.8 per cent. Manufacturing growth was nearly stagnant at 0.2 per cent. Sectors like automobiles – a good indicator of consumer sentiment – are stagnating. The Q3 growth was disincentivised by the “relief rally” in private consumptions, as Covid-induced restrictions eased. While private final consumption grew 7 per cent in Q3, it is expected to drop to just 1.5 per cent in Q4 (January to March). The government’s capital expenditure also has slowed sharply, with gross fixed capital formation growing by just 2 per cent in Q3. This raises question marks over the government’s massive capital expenditure plans for 2022-23. That momentum could drop further as indicated by the slide in GST collections, which fell to 1.33 lakh crore in February 2022 from 1.40 lakh crore in January, although the Finance Ministry has pointed out that February is a shorter month.More worrying is the steady rise in inflation. Which has been at the top end of the RBI’s “comfort band” for months now. Overall retail (consumer inflation) is at 6 per cent for January, although separate indices compiled by the Labour Ministry for industrial workers and agriculture and farm workers came in at 5.8 and 5.5 per cent, respectively. Worryingly, food inflation is over 6.22 per cent, while the less-used Wholesale Price Index has been in double-digit territory for 10 months now. With the strife in Ukraine sending energy prices soaring, and sanctions adding to the existing supply chain disruptions, a number of sectors are likely to feel the hit in the coming months. The Centre and the RBI have their task cut out to maintain some sort of fiscal and monetary support for growth while ensuring that prices do not go out of control. A cut in fuel taxes – despite revenue implications – may be the only option to curb the impact of soaring oil prices. Further, the RBI will have to manage the rupee to ensure imports – essential for growth – do not get priced out of hand by a strengthening dollar.Q. Which of the following can be inferred from the first few lines of the passage?a)The pandemic has a significant impact on the growth estimates and the GDP numbersb)The capex of the government affects the GST collections evidentlyc)The government had expected the GDP numbers to fall in the third quarterd)The impact of the pandemic was perceived to be lethal but the estimates have been calminge)Both (a) and (d)Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Banking Exams 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Read the given passage and answer the questions that follow. Some words and phrases have been underlined for you to answer better.The lower-than-expected GDP numbers for the third quarter (Q3) of the ongoing fiscal, combined with some early indicators for the final quarter, confirm the fears that the third wave of the pandemic may have had a bigger impact on growth than was earlier expected. According to data released by the National Statistical Office on Monday, the GDP grew by 5.4 per cent during Q3 of 2021-22. For the full financial year, GDP growth is now estimated to hit 8.9 per cent, lower than the 9.2 per cent projected earlier. While this is not bad news – after all, the economy actually shrunk by 6.6 per cent in 2020-21 – the slower than expected growth rate poses a question mark over the Budget estimates. What is worrying is the sharp slowdown in growth momentum. GDP growth clocked a scorching 20.3 per cent in Q1 (April-June), fell sharply to 8.5 per cent in Q2 (July-September) and has fallen further.Sectoral data show up other worrying indicators. Construction, which not only carries significant weight in the economy, but also is a big generator of jobs, contracted by 2.8 per cent. Manufacturing growth was nearly stagnant at 0.2 per cent. Sectors like automobiles – a good indicator of consumer sentiment – are stagnating. The Q3 growth was disincentivised by the “relief rally” in private consumptions, as Covid-induced restrictions eased. While private final consumption grew 7 per cent in Q3, it is expected to drop to just 1.5 per cent in Q4 (January to March). The government’s capital expenditure also has slowed sharply, with gross fixed capital formation growing by just 2 per cent in Q3. This raises question marks over the government’s massive capital expenditure plans for 2022-23. That momentum could drop further as indicated by the slide in GST collections, which fell to 1.33 lakh crore in February 2022 from 1.40 lakh crore in January, although the Finance Ministry has pointed out that February is a shorter month.More worrying is the steady rise in inflation. Which has been at the top end of the RBI’s “comfort band” for months now. Overall retail (consumer inflation) is at 6 per cent for January, although separate indices compiled by the Labour Ministry for industrial workers and agriculture and farm workers came in at 5.8 and 5.5 per cent, respectively. Worryingly, food inflation is over 6.22 per cent, while the less-used Wholesale Price Index has been in double-digit territory for 10 months now. With the strife in Ukraine sending energy prices soaring, and sanctions adding to the existing supply chain disruptions, a number of sectors are likely to feel the hit in the coming months. The Centre and the RBI have their task cut out to maintain some sort of fiscal and monetary support for growth while ensuring that prices do not go out of control. A cut in fuel taxes – despite revenue implications – may be the only option to curb the impact of soaring oil prices. Further, the RBI will have to manage the rupee to ensure imports – essential for growth – do not get priced out of hand by a strengthening dollar.Q. Which of the following can be inferred from the first few lines of the passage?a)The pandemic has a significant impact on the growth estimates and the GDP numbersb)The capex of the government affects the GST collections evidentlyc)The government had expected the GDP numbers to fall in the third quarterd)The impact of the pandemic was perceived to be lethal but the estimates have been calminge)Both (a) and (d)Correct answer is option 'A'. Can you explain this answer?.

Solutions for Read the given passage and answer the questions that follow. Some words and phrases have been underlined for you to answer better.The lower-than-expected GDP numbers for the third quarter (Q3) of the ongoing fiscal, combined with some early indicators for the final quarter, confirm the fears that the third wave of the pandemic may have had a bigger impact on growth than was earlier expected. According to data released by the National Statistical Office on Monday, the GDP grew by 5.4 per cent during Q3 of 2021-22. For the full financial year, GDP growth is now estimated to hit 8.9 per cent, lower than the 9.2 per cent projected earlier. While this is not bad news – after all, the economy actually shrunk by 6.6 per cent in 2020-21 – the slower than expected growth rate poses a question mark over the Budget estimates. What is worrying is the sharp slowdown in growth momentum. GDP growth clocked a scorching 20.3 per cent in Q1 (April-June), fell sharply to 8.5 per cent in Q2 (July-September) and has fallen further.Sectoral data show up other worrying indicators. Construction, which not only carries significant weight in the economy, but also is a big generator of jobs, contracted by 2.8 per cent. Manufacturing growth was nearly stagnant at 0.2 per cent. Sectors like automobiles – a good indicator of consumer sentiment – are stagnating. The Q3 growth was disincentivised by the “relief rally” in private consumptions, as Covid-induced restrictions eased. While private final consumption grew 7 per cent in Q3, it is expected to drop to just 1.5 per cent in Q4 (January to March). The government’s capital expenditure also has slowed sharply, with gross fixed capital formation growing by just 2 per cent in Q3. This raises question marks over the government’s massive capital expenditure plans for 2022-23. That momentum could drop further as indicated by the slide in GST collections, which fell to 1.33 lakh crore in February 2022 from 1.40 lakh crore in January, although the Finance Ministry has pointed out that February is a shorter month.More worrying is the steady rise in inflation. Which has been at the top end of the RBI’s “comfort band” for months now. Overall retail (consumer inflation) is at 6 per cent for January, although separate indices compiled by the Labour Ministry for industrial workers and agriculture and farm workers came in at 5.8 and 5.5 per cent, respectively. Worryingly, food inflation is over 6.22 per cent, while the less-used Wholesale Price Index has been in double-digit territory for 10 months now. With the strife in Ukraine sending energy prices soaring, and sanctions adding to the existing supply chain disruptions, a number of sectors are likely to feel the hit in the coming months. The Centre and the RBI have their task cut out to maintain some sort of fiscal and monetary support for growth while ensuring that prices do not go out of control. A cut in fuel taxes – despite revenue implications – may be the only option to curb the impact of soaring oil prices. Further, the RBI will have to manage the rupee to ensure imports – essential for growth – do not get priced out of hand by a strengthening dollar.Q. Which of the following can be inferred from the first few lines of the passage?a)The pandemic has a significant impact on the growth estimates and the GDP numbersb)The capex of the government affects the GST collections evidentlyc)The government had expected the GDP numbers to fall in the third quarterd)The impact of the pandemic was perceived to be lethal but the estimates have been calminge)Both (a) and (d)Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Banking Exams. Download more important topics, notes, lectures and mock test series for Banking Exams Exam by signing up for free.

Here you can find the meaning of Read the given passage and answer the questions that follow. Some words and phrases have been underlined for you to answer better.The lower-than-expected GDP numbers for the third quarter (Q3) of the ongoing fiscal, combined with some early indicators for the final quarter, confirm the fears that the third wave of the pandemic may have had a bigger impact on growth than was earlier expected. According to data released by the National Statistical Office on Monday, the GDP grew by 5.4 per cent during Q3 of 2021-22. For the full financial year, GDP growth is now estimated to hit 8.9 per cent, lower than the 9.2 per cent projected earlier. While this is not bad news – after all, the economy actually shrunk by 6.6 per cent in 2020-21 – the slower than expected growth rate poses a question mark over the Budget estimates. What is worrying is the sharp slowdown in growth momentum. GDP growth clocked a scorching 20.3 per cent in Q1 (April-June), fell sharply to 8.5 per cent in Q2 (July-September) and has fallen further.Sectoral data show up other worrying indicators. Construction, which not only carries significant weight in the economy, but also is a big generator of jobs, contracted by 2.8 per cent. Manufacturing growth was nearly stagnant at 0.2 per cent. Sectors like automobiles – a good indicator of consumer sentiment – are stagnating. The Q3 growth was disincentivised by the “relief rally” in private consumptions, as Covid-induced restrictions eased. While private final consumption grew 7 per cent in Q3, it is expected to drop to just 1.5 per cent in Q4 (January to March). The government’s capital expenditure also has slowed sharply, with gross fixed capital formation growing by just 2 per cent in Q3. This raises question marks over the government’s massive capital expenditure plans for 2022-23. That momentum could drop further as indicated by the slide in GST collections, which fell to 1.33 lakh crore in February 2022 from 1.40 lakh crore in January, although the Finance Ministry has pointed out that February is a shorter month.More worrying is the steady rise in inflation. Which has been at the top end of the RBI’s “comfort band” for months now. Overall retail (consumer inflation) is at 6 per cent for January, although separate indices compiled by the Labour Ministry for industrial workers and agriculture and farm workers came in at 5.8 and 5.5 per cent, respectively. Worryingly, food inflation is over 6.22 per cent, while the less-used Wholesale Price Index has been in double-digit territory for 10 months now. With the strife in Ukraine sending energy prices soaring, and sanctions adding to the existing supply chain disruptions, a number of sectors are likely to feel the hit in the coming months. The Centre and the RBI have their task cut out to maintain some sort of fiscal and monetary support for growth while ensuring that prices do not go out of control. A cut in fuel taxes – despite revenue implications – may be the only option to curb the impact of soaring oil prices. Further, the RBI will have to manage the rupee to ensure imports – essential for growth – do not get priced out of hand by a strengthening dollar.Q. Which of the following can be inferred from the first few lines of the passage?a)The pandemic has a significant impact on the growth estimates and the GDP numbersb)The capex of the government affects the GST collections evidentlyc)The government had expected the GDP numbers to fall in the third quarterd)The impact of the pandemic was perceived to be lethal but the estimates have been calminge)Both (a) and (d)Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Read the given passage and answer the questions that follow. Some words and phrases have been underlined for you to answer better.The lower-than-expected GDP numbers for the third quarter (Q3) of the ongoing fiscal, combined with some early indicators for the final quarter, confirm the fears that the third wave of the pandemic may have had a bigger impact on growth than was earlier expected. According to data released by the National Statistical Office on Monday, the GDP grew by 5.4 per cent during Q3 of 2021-22. For the full financial year, GDP growth is now estimated to hit 8.9 per cent, lower than the 9.2 per cent projected earlier. While this is not bad news – after all, the economy actually shrunk by 6.6 per cent in 2020-21 – the slower than expected growth rate poses a question mark over the Budget estimates. What is worrying is the sharp slowdown in growth momentum. GDP growth clocked a scorching 20.3 per cent in Q1 (April-June), fell sharply to 8.5 per cent in Q2 (July-September) and has fallen further.Sectoral data show up other worrying indicators. Construction, which not only carries significant weight in the economy, but also is a big generator of jobs, contracted by 2.8 per cent. Manufacturing growth was nearly stagnant at 0.2 per cent. Sectors like automobiles – a good indicator of consumer sentiment – are stagnating. The Q3 growth was disincentivised by the “relief rally” in private consumptions, as Covid-induced restrictions eased. While private final consumption grew 7 per cent in Q3, it is expected to drop to just 1.5 per cent in Q4 (January to March). The government’s capital expenditure also has slowed sharply, with gross fixed capital formation growing by just 2 per cent in Q3. This raises question marks over the government’s massive capital expenditure plans for 2022-23. That momentum could drop further as indicated by the slide in GST collections, which fell to 1.33 lakh crore in February 2022 from 1.40 lakh crore in January, although the Finance Ministry has pointed out that February is a shorter month.More worrying is the steady rise in inflation. Which has been at the top end of the RBI’s “comfort band” for months now. Overall retail (consumer inflation) is at 6 per cent for January, although separate indices compiled by the Labour Ministry for industrial workers and agriculture and farm workers came in at 5.8 and 5.5 per cent, respectively. Worryingly, food inflation is over 6.22 per cent, while the less-used Wholesale Price Index has been in double-digit territory for 10 months now. With the strife in Ukraine sending energy prices soaring, and sanctions adding to the existing supply chain disruptions, a number of sectors are likely to feel the hit in the coming months. The Centre and the RBI have their task cut out to maintain some sort of fiscal and monetary support for growth while ensuring that prices do not go out of control. A cut in fuel taxes – despite revenue implications – may be the only option to curb the impact of soaring oil prices. Further, the RBI will have to manage the rupee to ensure imports – essential for growth – do not get priced out of hand by a strengthening dollar.Q. Which of the following can be inferred from the first few lines of the passage?a)The pandemic has a significant impact on the growth estimates and the GDP numbersb)The capex of the government affects the GST collections evidentlyc)The government had expected the GDP numbers to fall in the third quarterd)The impact of the pandemic was perceived to be lethal but the estimates have been calminge)Both (a) and (d)Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Read the given passage and answer the questions that follow. Some words and phrases have been underlined for you to answer better.The lower-than-expected GDP numbers for the third quarter (Q3) of the ongoing fiscal, combined with some early indicators for the final quarter, confirm the fears that the third wave of the pandemic may have had a bigger impact on growth than was earlier expected. According to data released by the National Statistical Office on Monday, the GDP grew by 5.4 per cent during Q3 of 2021-22. For the full financial year, GDP growth is now estimated to hit 8.9 per cent, lower than the 9.2 per cent projected earlier. While this is not bad news – after all, the economy actually shrunk by 6.6 per cent in 2020-21 – the slower than expected growth rate poses a question mark over the Budget estimates. What is worrying is the sharp slowdown in growth momentum. GDP growth clocked a scorching 20.3 per cent in Q1 (April-June), fell sharply to 8.5 per cent in Q2 (July-September) and has fallen further.Sectoral data show up other worrying indicators. Construction, which not only carries significant weight in the economy, but also is a big generator of jobs, contracted by 2.8 per cent. Manufacturing growth was nearly stagnant at 0.2 per cent. Sectors like automobiles – a good indicator of consumer sentiment – are stagnating. The Q3 growth was disincentivised by the “relief rally” in private consumptions, as Covid-induced restrictions eased. While private final consumption grew 7 per cent in Q3, it is expected to drop to just 1.5 per cent in Q4 (January to March). The government’s capital expenditure also has slowed sharply, with gross fixed capital formation growing by just 2 per cent in Q3. This raises question marks over the government’s massive capital expenditure plans for 2022-23. That momentum could drop further as indicated by the slide in GST collections, which fell to 1.33 lakh crore in February 2022 from 1.40 lakh crore in January, although the Finance Ministry has pointed out that February is a shorter month.More worrying is the steady rise in inflation. Which has been at the top end of the RBI’s “comfort band” for months now. Overall retail (consumer inflation) is at 6 per cent for January, although separate indices compiled by the Labour Ministry for industrial workers and agriculture and farm workers came in at 5.8 and 5.5 per cent, respectively. Worryingly, food inflation is over 6.22 per cent, while the less-used Wholesale Price Index has been in double-digit territory for 10 months now. With the strife in Ukraine sending energy prices soaring, and sanctions adding to the existing supply chain disruptions, a number of sectors are likely to feel the hit in the coming months. The Centre and the RBI have their task cut out to maintain some sort of fiscal and monetary support for growth while ensuring that prices do not go out of control. A cut in fuel taxes – despite revenue implications – may be the only option to curb the impact of soaring oil prices. Further, the RBI will have to manage the rupee to ensure imports – essential for growth – do not get priced out of hand by a strengthening dollar.Q. Which of the following can be inferred from the first few lines of the passage?a)The pandemic has a significant impact on the growth estimates and the GDP numbersb)The capex of the government affects the GST collections evidentlyc)The government had expected the GDP numbers to fall in the third quarterd)The impact of the pandemic was perceived to be lethal but the estimates have been calminge)Both (a) and (d)Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Read the given passage and answer the questions that follow. Some words and phrases have been underlined for you to answer better.The lower-than-expected GDP numbers for the third quarter (Q3) of the ongoing fiscal, combined with some early indicators for the final quarter, confirm the fears that the third wave of the pandemic may have had a bigger impact on growth than was earlier expected. According to data released by the National Statistical Office on Monday, the GDP grew by 5.4 per cent during Q3 of 2021-22. For the full financial year, GDP growth is now estimated to hit 8.9 per cent, lower than the 9.2 per cent projected earlier. While this is not bad news – after all, the economy actually shrunk by 6.6 per cent in 2020-21 – the slower than expected growth rate poses a question mark over the Budget estimates. What is worrying is the sharp slowdown in growth momentum. GDP growth clocked a scorching 20.3 per cent in Q1 (April-June), fell sharply to 8.5 per cent in Q2 (July-September) and has fallen further.Sectoral data show up other worrying indicators. Construction, which not only carries significant weight in the economy, but also is a big generator of jobs, contracted by 2.8 per cent. Manufacturing growth was nearly stagnant at 0.2 per cent. Sectors like automobiles – a good indicator of consumer sentiment – are stagnating. The Q3 growth was disincentivised by the “relief rally” in private consumptions, as Covid-induced restrictions eased. While private final consumption grew 7 per cent in Q3, it is expected to drop to just 1.5 per cent in Q4 (January to March). The government’s capital expenditure also has slowed sharply, with gross fixed capital formation growing by just 2 per cent in Q3. This raises question marks over the government’s massive capital expenditure plans for 2022-23. That momentum could drop further as indicated by the slide in GST collections, which fell to 1.33 lakh crore in February 2022 from 1.40 lakh crore in January, although the Finance Ministry has pointed out that February is a shorter month.More worrying is the steady rise in inflation. Which has been at the top end of the RBI’s “comfort band” for months now. Overall retail (consumer inflation) is at 6 per cent for January, although separate indices compiled by the Labour Ministry for industrial workers and agriculture and farm workers came in at 5.8 and 5.5 per cent, respectively. Worryingly, food inflation is over 6.22 per cent, while the less-used Wholesale Price Index has been in double-digit territory for 10 months now. With the strife in Ukraine sending energy prices soaring, and sanctions adding to the existing supply chain disruptions, a number of sectors are likely to feel the hit in the coming months. The Centre and the RBI have their task cut out to maintain some sort of fiscal and monetary support for growth while ensuring that prices do not go out of control. A cut in fuel taxes – despite revenue implications – may be the only option to curb the impact of soaring oil prices. Further, the RBI will have to manage the rupee to ensure imports – essential for growth – do not get priced out of hand by a strengthening dollar.Q. Which of the following can be inferred from the first few lines of the passage?a)The pandemic has a significant impact on the growth estimates and the GDP numbersb)The capex of the government affects the GST collections evidentlyc)The government had expected the GDP numbers to fall in the third quarterd)The impact of the pandemic was perceived to be lethal but the estimates have been calminge)Both (a) and (d)Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Read the given passage and answer the questions that follow. Some words and phrases have been underlined for you to answer better.The lower-than-expected GDP numbers for the third quarter (Q3) of the ongoing fiscal, combined with some early indicators for the final quarter, confirm the fears that the third wave of the pandemic may have had a bigger impact on growth than was earlier expected. According to data released by the National Statistical Office on Monday, the GDP grew by 5.4 per cent during Q3 of 2021-22. For the full financial year, GDP growth is now estimated to hit 8.9 per cent, lower than the 9.2 per cent projected earlier. While this is not bad news – after all, the economy actually shrunk by 6.6 per cent in 2020-21 – the slower than expected growth rate poses a question mark over the Budget estimates. What is worrying is the sharp slowdown in growth momentum. GDP growth clocked a scorching 20.3 per cent in Q1 (April-June), fell sharply to 8.5 per cent in Q2 (July-September) and has fallen further.Sectoral data show up other worrying indicators. Construction, which not only carries significant weight in the economy, but also is a big generator of jobs, contracted by 2.8 per cent. Manufacturing growth was nearly stagnant at 0.2 per cent. Sectors like automobiles – a good indicator of consumer sentiment – are stagnating. The Q3 growth was disincentivised by the “relief rally” in private consumptions, as Covid-induced restrictions eased. While private final consumption grew 7 per cent in Q3, it is expected to drop to just 1.5 per cent in Q4 (January to March). The government’s capital expenditure also has slowed sharply, with gross fixed capital formation growing by just 2 per cent in Q3. This raises question marks over the government’s massive capital expenditure plans for 2022-23. That momentum could drop further as indicated by the slide in GST collections, which fell to 1.33 lakh crore in February 2022 from 1.40 lakh crore in January, although the Finance Ministry has pointed out that February is a shorter month.More worrying is the steady rise in inflation. Which has been at the top end of the RBI’s “comfort band” for months now. Overall retail (consumer inflation) is at 6 per cent for January, although separate indices compiled by the Labour Ministry for industrial workers and agriculture and farm workers came in at 5.8 and 5.5 per cent, respectively. Worryingly, food inflation is over 6.22 per cent, while the less-used Wholesale Price Index has been in double-digit territory for 10 months now. With the strife in Ukraine sending energy prices soaring, and sanctions adding to the existing supply chain disruptions, a number of sectors are likely to feel the hit in the coming months. The Centre and the RBI have their task cut out to maintain some sort of fiscal and monetary support for growth while ensuring that prices do not go out of control. A cut in fuel taxes – despite revenue implications – may be the only option to curb the impact of soaring oil prices. Further, the RBI will have to manage the rupee to ensure imports – essential for growth – do not get priced out of hand by a strengthening dollar.Q. Which of the following can be inferred from the first few lines of the passage?a)The pandemic has a significant impact on the growth estimates and the GDP numbersb)The capex of the government affects the GST collections evidentlyc)The government had expected the GDP numbers to fall in the third quarterd)The impact of the pandemic was perceived to be lethal but the estimates have been calminge)Both (a) and (d)Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice Banking Exams tests.