India's April-June Quarter GDP Growth At 7.8 Per Cent, Highest In Four Quarters

India still remains the fastest-growing major economy as China's GDP growth in the April-June quarter was 6.3 per cent

India's gross domestic product (GDP) grew by 7.8 per cent in the quarter that ended on June 30, data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Thursday revealed. The GDP, at 7.8 per cent in Q1 of 2023-24, is the highest in four quarters, according to NSO data. The April-June GDP grew 7.8 pr cent as against 6.1 per cent in January-March, while 13.1 per cent in the year-ago quarter.  

India still remains the fastest-growing major economy as China's GDP growth in the April-June quarter was 6.3 per cent.

According to the release, the 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. Nominal GDP or GDP at current prices in Q1 2023-24 is estimated at Rs 70.67 lakh crore, as against Rs 65.42 lakh crore in Q1 2022-23, showing a growth of 8.0 per cent as compared to 27.7 per cent in Q1 2022-23.

The gross fixed capital formation in Q1 grew at 8.0 per cent as against 8.9 per cent in January-March and 20.4 per cent in April-June 2022. Government expenditure rose in Q1 at -0.7 per cent as against 2.3 per cent in January-March and 1.8 per cent in April-June 2022.

In case of private consumption growth, it is recorded at 6.0 per cent in Q1, as against 2.8 per cent in January-March and 19.8 per cent in April-June 2022.

The construction sector grew at 7.9 per cent in Q1 as against 10.4 per cent in January-March and 16 per cent in April-June 2022, while agriculture sector clocked growth of 3.5 per cent on a YoY basis, with the sector reporting 2.4 per cent growth in April-June 2022. The agricultural sector logged a 5.5 per cent growth in the January-March quarter.

However, the RBI, in its recent bi-monthly monetary policy announcement, had pegged the GDP growth rate for the June quarter at 8 per cent. "Real GDP growth for 2023-24 is projected at 6.5 per cent with Q1 at 8 per cent; Q2 at 6.5 per cent; Q3 at 6.0 per cent; and Q4 at 5.7 per cent," RBI governor Shaktikanta Das had said earlier this month. In its latest report, the SBI estimated the Indian economy might have grown by 8.3 per cent in April-June backed by the rapid increase in capital expenditure by central and state governments.

Union Finance Minister Nirmala Sitharaman, during her addresss at the B20 Summit India 2023, said that the Q1 numbers were expected to be healthy.  

 The next release of quarterly GDP estimates for the quarter July-September, 2023 (Q2 2023-24) will be on 30.11.2023.