India’s GDP Latest Update: India remains the fastest-growing country globally. Due to the better performance of agriculture, manufacturing, mining and construction sectors, the country’s economic growth rate stood at 6.1 per cent in the fourth quarter of the last financial year, 2022-23. With this, the gross domestic product (GDP) growth rate during the entire fiscal reached 7.2 per cent, which is higher than expected.
With this increase, the country’s economy has become 3,300 billion dollars.
Asia’s Third-Largest Economy
According to government data, Asia’s third-largest economy grew 6.1 per cent in the January-March quarter, beating all estimates. This is more than 4.5 per cent of the previous quarter.
5.5 Percent Growth In Agriculture Sector
This economic growth was achieved based on 5.5 per cent growth in the agriculture sector and 4.5 per cent in the manufacturing sector. Apart from this, the performance of the construction, service and mining sectors was also good.
According to data from the National Statistics Office, the growth rate in the January-March quarter of the financial year 2022-23 was 6.1 per cent. Whereas earlier, it was 4.5 per cent in the October-December quarter and 6.2 per cent in the July-September quarter.
The GDP growth rate was 13.1 per cent in the April-June quarter of 2022-23. It was four per cent in the January-March quarter of the financial year 2021-22.
Economic Growth Was 7.2 Percent In The Last Financial Year
According to statistics, the economic growth rate in the entire financial year 2022-23 was 7.2 per cent. In the previous financial year, 2021-22, it was 9.1 per cent.
In the second advance estimate released by the National Statistics Office in February, the country’s growth rate was expected to be seven per cent.
Fastest Growing Country
With this, India remains a country achieving the fastest economic growth rate. The growth rate in China was 4.5 per cent in the January-March quarter this year.
Risk Increased Due To Less Import-Export
Indicators like GST collection, electricity consumption, and PMI (Purchasing Managers Index) indicate that economic activities will continue in April. However, exports and imports have decreased. This has created some risk. Barring monsoon and global political risk, the country’s economic growth rate can remain above the estimated 6.5 per cent in 2023-24.
Chief Economic Advisor V Ananth Nageswaran said, “We have presented a story of sustainable economic growth with macroeconomic, financial and fiscal stability. With this, we are excited about another year of solid economic performance by India.
Deloitte India Economist Rumki Mazumdar said the GDP numbers are surprisingly heartening but not entirely unexpected.
He said, “The boom in the manufacturing sector is making the situation more pleasant as the sector remained a matter of concern for the policymakers.”
Gross Value Added (GVA) growth in the financial year ending March 2023 was seven per cent against 8.8 per cent in the previous financial year.
The GVA growth rate in the manufacturing sector increased to 4.5 per cent in the quarter ending March 2023 from 0.6 per cent in the same quarter a year ago.
The GVA growth rate in the mining sector stood at 4.3 per cent in the fourth quarter ending March 2023, as against 2.3 per cent in the same quarter a year ago. The construction sector’s growth rate was 10.4 per cent during this period, which was 4.9 per cent in the same quarter of 2021-22 a year ago.
The growth rate of the agriculture sector during this period was 5.5 per cent, which was 4.1 per cent in the same quarter a year ago.
The Pace Of Growth Of Industries Decreased
Eight core industries’ growth slowed to a six-month low of 3.5 per cent in April 2023. The development of the primary sector slowed down mainly due to the decrease in crude oil, natural gas, refinery products and electricity production.
On the other hand, due to the better performance of coal, fertilizer and power sectors, the growth rate of basic industries in the entire financial year 2022-23 was 7.7 per cent.
Fiscal Deficit 6.4 Percent Of GDP
According to the Controller General of Accounts data, the fiscal deficit in 2022-23 was 6.4 per cent of GDP, which aligns with the target. Better tax and non-tax revenue collections helped contain the fiscal deficit.
