“India’s Robust GDP Growth Reaches 7.8%”:
On Thursday, the government reported that India’s economy has displayed resilience, with the Gross Domestic Product (GDP) expanding by 7.8% in the first quarter of the fiscal year 2023-24, in contrast to the 13.1% growth in the same quarter of the previous year.
In the first quarter of FY24, the Indian economy remained on a positive trajectory, marked by substantial growth driven by domestic demand. Government capital expenditure and recovery driven by the services sector acted as shields, safeguarding the nation from the impact of stringent monetary policies and a globally challenging economic environment.
India has maintained its status as the fastest-growing major economy, surpassing China, which recorded a 6.3% growth rate in April-June 2023. According to data released by the National Statistical Office (NSO), India has also retained its position as the fastest-growing large economy, largely attributed to improved performances in the agriculture and financial sectors.
V Anantha Nageswaran, the Chief Economic Adviser (CEA), stated that India’s quarterly GDP growth outpaces that of many other economies. He added that the government and the Reserve Bank of India (RBI) are confident in retaining their FY24 GDP growth projection of 6.5%. Nageswaran highlighted the positive trends in state-level capital expenditure and private capital formation.
Regarding rising inflation, he expressed confidence that there is no substantial cause for concern about uncontrollable inflation. He noted that both the government and RBI are taking measures to ensure an adequate supply of goods. Nageswaran anticipated a reduction in food inflation with the arrival of fresh supplies and government interventions while keeping an eye on the impact of deficient rainfall in August.
The data indicated a 3.5% growth in the agriculture sector, up from 2.4% in the same quarter of 2022-23, while the manufacturing sector decelerated to 4.7% growth in the first quarter compared to 6.1% in the previous year. In April-June, private consumption in India grew by 6%, an improvement from 2.8% in January-March and 19.8% in April-June 2022.
The construction sector recorded a growth rate of 7.9% in the same period, down from 10.4% in January-March and 16% in April-June 2022. GDP growth during the January-March quarter of 2022-23 was 6.1%, and it stood at 4.5% during October-December. The NSO reported that in Q1 2023-24, real GDP, based on constant (2011-12) prices, reached approximately Rs 40.37 lakh crore, compared to Rs 37.44 lakh crore in Q1 2022-23, reflecting a growth rate of 7.8%, compared to 13.1% in Q1 2022-23.