NE BUSINESS BUREAU
NEW DELHI/MUMBAI, AUG 31
India recorded an economic growth rate of 7.8 per cent in the April-June quarter of 2023-24 and remained the fastest growing large economy mainly due to better performance by agriculture and financial sectors, government data showed on Thursday.
The gross domestic product (GDP) expanded by 13.1 per cent in the April-June quarter of 2022-23.
India remained the fastest-growing major economy as China posted a 6.3 per cent growth in April-June 2023.
- Overall GDP for ongoing financial year is likely to be around 6.1 pc
- The country remained the fastest growing large economy, leveraged by the financial and agricultural sectors performing well.
- China posted a 6.3 per cent growth in April-June 2023
- All in all, India’s performance is fully consonant with its growing economic might on the global stage: Subho Moulik, CEO, Appreciate
According to the National Statistical Office (NSO) data, the agriculture sector gross value added (GVA) recorded growth of 3.5 per cent, up from 2.4 per cent in the April-June quarter of 2022-23.
The expansion in ‘financial, real estate and professional services’ GVA was 12.2 per cent, up from 8.5 per cent in the year-ago quarter.
However, the GVA in the manufacturing sector decelerated to 4.7 per cent in the first quarter of the current fiscal compared to 6.1 per cent in the year-ago period.
The growth in Gross Domestic Product (GDP) during the January-March quarter of 2022-23 was 6.1 per cent and 4.5 per cent during October-December.
“Real GDP or GDP at constant (2011-12) prices in Q1 2023-24 is estimated to attain a level of Rs 40.37 lakh crore, as against Rs 37.44 lakh crore in Q1 2022-23, showing a growth of 7.8 per cent as compared to 13.1 per cent in Q1 2022-23,” NSO said in a statement.
It further said the nominal GDP or GDP at current prices in the first quarter of 2023-24 has been estimated at Rs 70.67 lakh crore, as against Rs 65.42 lakh crore in the year-ago period, showing a growth of 8 per cent as compared to 27.7 per cent in Q1 2022-23.
The NSO will release quarterly GDP estimates for the July-September, 2023 (Q2 2023-24) on November 30, 2023.
As per the data, the output (GVA) in the ‘mining and quarrying’ decelerated to 5.8 per cent in the first quarter from 9.5 per cent a year ago, ‘electricity, gas, water supply and other utility services’ to 2.9 per cent from 14.9 per cent, and ‘construction’ to 7.9 per cent from 16 per cent.
In comparison, China’s GDP growth slowed down to 6.3 per cent, while the US registered 2.1 per cent growth in the same period. The UK GDP increased by just 0.4 per cent and Japan’s by 6 per cent, while Germany’s GDP showed a decrease by 0.2 per cent.
All in all, India’s performance is fully consonant with its growing economic might on the global stage
Commenting on this, Subho Moulik, CEO, Appreciate, a fintech platform for savings and investments, said: “This is fantastic news, but not very surprising to anyone who’s been closely following India’s growth story. The government not only invested a whopping $120 billion in infrastructure development in Q1 but has also been incentivising such investments. Indeed, the construction industry grew by an impressive 7.9% in Q1. The focus on infrastructure has benefitted a broad swath of economic sectors. In addition, India’s service industry now makes up over 50% of its economic production, with financial, real estate and professional services seeing a growth of 12.2% in Q1. This puts us in a better position compared to the many major economies facing a slowdown. This growth also reflects the blooming of the MSME sector and of our human capital. All in all, India’s performance is fully consonant with its growing economic might on the global stage.”
Raghvendra Nath, Managing Director, Ladderup Wealth Management Pvt. Ltd, said,
“Though the GDP growth was lower than RBI expectations, India remains the fastest growing economy in the world at 7.8%. We expect the growth to moderate further in the coming quarters due to the potential slowdown in capex because of the upcoming elections and the impact of El Nino on the monsoon and the slowdown in exports.”
