India’s GDP grew by 7.8% in the April-June quarter: Government Data

1

India’s GDP grew by 7.8%

India’s GDP by Government Data

In the first quarter of 2023-24, India’s Gross Domestic Product (GDP) grew by 7.8%, compared to 13.1% in the same quarter a year ago, according to data released by the National Statistical Office (NSO) on Thursday.

India’s GDP grew by 7.8% in the first quarter of 2023-24.
India’s GDP grew by 7.8% in the first quarter of 2023-24.
This growth rate is higher than the 6.1% growth in the previous quarter. However, this pace is slower compared to the 13.1% growth recorded during the first quarter of the financial year 2022-23.

Moreover, India has maintained its position as the fastest-growing major economy, with a GDP growth of 7.8% in the April-June quarter, while China’s GDP growth remained at 6.3%.

According to the NSO data, the agricultural sector witnessed a growth of 3.5%, an improvement from the recorded 2.4% during the same period of the financial year 2022-23.

However, the pace of growth in the manufacturing sector slowed to 4.7% during the first quarter of the current financial year, which is less than the 6.1% growth recorded in the same period of the previous year.

After the meeting of the Monetary Policy Committee (MPC) in August, the Reserve Bank of India (RBI) had projected a growth rate of 6.5% for the entire financial year. According to a Mint report, breaking this down on a quarterly basis, the numbers for Q1 were at 8%.

The International Monetary Fund (IMF) has adjusted its perspective for India’s GDP growth in 2023, raising it to 6.1%. In June, Fitch Ratings revised its forecast for India’s economic growth in the financial year 2023-24 (FY24), increasing it from the previous estimate of 6% to 6.3%.

As per an official government announcement, the process of determining quarterly GDP is rooted in an approach centered on indicators. This involves the utilization of a benchmark-indicator method, where the quarterly estimates from the previous year are extrapolated to create a benchmark year. This is achieved by incorporating the relevant indicators specific to various sectors, which in turn aids in calculating the growth rates. The official statement from the government explains that the mechanism for evaluating quarterly GDP is closely tied to these indicators. The benchmark-indicator technique combines the available quarterly assessments from the previous year to establish the benchmark year. This process is supported by the utilization of sector-specific indicators, which play a crucial role in computing the growth percentages.

In a recent announcement that’s captured the attention of economists, policymakers, and citizens alike, India’s Gross Domestic Product (GDP) has exhibited robust growth, expanding by 7.8% during the April-June quarter. This news, backed by official government data, sheds light on the nation’s economic trajectory and provides insights into the factors driving this encouraging upswing.

India's GDP

The figures released by the National Statistical Office (NSO) unveil a significant leap in India’s GDP growth during the initial quarter of the financial year 2023-24. This surge marks a substantial rebound from the preceding quarter’s growth rate of 6.1%, signifying a notable acceleration in economic activity.

While the growth rate of 7.8% is certainly impressive, it’s noteworthy to juxtapose it with the corresponding quarter from the previous year. In the April-June quarter of the financial year 2022-23, the GDP growth had surged to an astonishing 13.1%. While the current growth rate appears to be slightly slower in comparison, it’s essential to consider the unique circumstances and challenges faced by the economy during this period.

Analyzing the sector-wise performance, the agricultural sector emerged as a star player with a growth rate of 3.5%. This represents a commendable improvement from the 2.4% growth recorded in the same period of the previous financial year. The manufacturing sector, on the other hand, experienced a relatively moderate growth rate of 4.7%, reflecting a deceleration from the 6.1% growth achieved in the corresponding quarter of the previous year.

The government has offered insights into the methodology underpinning the calculation of these quarterly GDP estimates. According to the official statement, the process relies on an indicator-centric approach and is formulated using the benchmark-indicator method. This technique involves extrapolating the available quarterly estimates from the previous year to establish a benchmark year. The growth rates are then derived by considering relevant sector-specific indicators.

In a global context, India’s remarkable growth performance holds its ground firmly. Despite the slightly slower pace of growth compared to the previous year, India’s GDP expansion of 7.8% outpaces the growth rate of its neighbor, China, which stood at 6.3% during the same period. This reaffirms India’s position as one of the world’s fastest-growing major economies.

As we delve into the intricacies of India’s GDP growth during the April-June quarter, it becomes evident that the economy is demonstrating resilience and dynamism. While comparisons with the previous year’s exceptional growth might create a relative contrast, it’s crucial to appreciate the various factors at play, including global economic dynamics and internal challenges. The government’s commitment to fostering growth, coupled with the nation’s inherent potential, bodes well for a promising future. The 7.8% growth signifies not just numbers on a chart but the collective efforts of industries, individuals, and policies working in tandem to shape India’s economic landscape. As the financial year progresses, all eyes will be on how these trends evolve and contribute to India’s ongoing journey towards prosperity.

read more…

1 thought on “India’s GDP grew by 7.8% in the April-June quarter: Government Data

Leave a Reply

Your email address will not be published. Required fields are marked *