India’s gross domestic product (GDP) grew by 7.8 per cent in the April-June quarter of current fiscal (2023-2024), compared to a growth of 6.1 per cent in the previous January-March quarter of fiscal 2022-23, according to official data shared by the National Statistical Office. India remains one of the fastest growing major economies, especially as China’s post-pandemic recovery has slowed.
The GDP print came largely in line with Street estimates as economists projected that the economy recorded the fastest annual pace in a year, driven by the services sector and greater capital expenditure.
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Chief Economic Advisor V Anantha Nageswaran on Thursday said the economy is expected to grow at 6.5 per cent in the current fiscal notwithstanding deficient monsoon rains.
He also said that there is no real cause for concern that inflation would spike out of control as both the government and the Reserve Bank are taking adequate steps to maintain supply and keep prices under check.
The CEA said food inflation is likely to subside with the arrival of fresh stock and government measures. However, the impact of deficient rains in August is to be watched.
India GDP Growth Updates: With 7.8 percent GDP growth rate, India remained the fastest growing large economy mainly due to better performance by agriculture and financial sectors, government data showed.
India’s gross domestic product (GDP) clocked a growth rate of 7.8 per cent in the April-June quarter of FY24 as compared to 13.1 per cent in the year ago period, data released by the National Statistical Office (NSO) on Thursday stated. The country’s real GDP came in line with economists’ estimate of 7.7-8.5 per cent.
At 7.8 per cent, India remains the fastest-growing major economy as China’s GDP growth in the April-June quarter was 6.3 per cent.
According to the NSO data, the agriculture sector recorded a 3.5 per cent growth, up from 2.4 per cent in the April-June quarter of 2022-23. However, the growth 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.
India’s growth rate is expected to moderate in the coming quarters, given the effect of the El Nino on the monsoon, weakness in mining output, and sluggish exports, and a possible slowing in the momentum of government capex as Lok Sabha elections approach.
The National Statistical Office under the Ministry of Statistics and Programme Implementation releases quarterly GDP data on the last working day of the second month after the reporting quarter.
The Reserve Bank of India (RBI) estimated that India’s Q1 GDP growth would come at 6.7 per cent (given in August 2022) to 7.2 per cent (September 2022) to 7.1 per cent (December 2022) to 7.8 per cent (February and April 2023), and finally 8 per cent (June and August 2023).
“There is momentum in economic activity in general and it is not driven by price-related distortions. Therefore our projections still are very comfortably placed at 6.5 per cent for the current financial year,” he said.
Risk is evenly distributed to around 6.5 per cent growth projection for FY2023-24, he said while briefing media following the release of first quarter GDP numbers. Rising crude prices may warrant attention and prolonged geopolitical uncertainty and likely tighter financial conditions can pose risk to growth, he added.