India's GDP Grows At 6.1 Per Cent In March Quarter, Clocks 7.2 Per Cent Growth In FY23

Among sectorwise growth, agricultural sector grew at 5.5per cent, mining sector recorded growth of 16.3 per cent, while construction sector expanded at 10.4 per cent

India's gross domestic product or GDP expanded by 6.1 per cent in the fourth quarter (Q4) of fiscal year 2022-23, according to the official data shared by the National Statistical Office (NSO). For the entire FY23, the growth rate came in at 7.2 per cent. In Q4FY22, gross domestic product (GDP) growth was 4 per cent.

The growth in real GDP during 2022-23 is estimated at 7.2 per cent as compared to 9.1 per cent in 2021-22, while nominal GDP or GDP at Current Prices in the year 2022-23 is estimated to attain a level of Rs 272.41 lakh crore, as against Rs 234.71 lakh crore in 2021-22, showing a growth rate of 16.1 per cent, according to the release.

In Q3FY23, the GDP growth rate was 4.4 per cent, while it was 6.3 per cent in Q2FY23, and 13.2 per cent in Q1FY23.

Among sectorwise growth, agricultural sector grew at 5.5 per cent, mining sector recorded growth of 16.3 per cent, while construction sector expanded at 10.4 per cent. The other sectors such as electricity, manufacturing, financial, and trade and hotels have recored growth of 6.9 per cent, 4.5 per cent, 7.1 per cent, and 9.1 per cent, respectively.

In a statement last week, Reserve Bank of India Governor Shaktikanta Das expressed the possibility of FY23 GDP growth exceeding 7 per cent. He noted that recent trends indicate a potential surpassing of the official estimate. Das highlighted that various economic indicators for Q4 reflect sustained momentum and maintained growth in economic activity. The growth rate of 7.2 per cent for the entire FY23 is also higher than the RBI's projection of 7 per cent. However, the pace of growth was slower as compared to 9.1 per cent logged in FY22.

The GDP growth for Q3 FY23 (October-December) stood at 4.4 per cent, while it was 4 per cent in Q4 of FY22.

According to a recent Reuters poll last week, a group of 56 economists predicted that the growth for Q4 of FY23 will be around 5 per cent. In an earlier poll in April, which included 45 economists, the projected GDP growth for FY23 was estimated to be 6.9 per cent. However, the majority of analysts now suggested that the FY23 growth will be at least 7 per cent, and there is even a possibility of surpassing that figure.

Ahead of the January-March GDP growth numbers, the data on eight core sectors' growth was also released. The core sectors grew at 3.5 per cent in April 2023, which is slightly lower as against 3.6 per cent in the preceding month.

Meanwhile, the fiscal deficit for FY23 worked out to be 6.4 per cent of the gross domestic product (GDP), as it was projected by the finance ministry in the revised Budget Estimates, according to government data released on Wednesday. 

The next release of quarterly GDP estimates for the quarter April-June of 2023-24 (Q1 2023-24) will be on 31.08.2023