News Update

India’s GDP increases by 13.5% in first quarter 2022-23

• ByStartupStory     |    September 1, 2022

In the first quarter of the current fiscal year, the Indian economy expanded by 13.5%, primarily as a result of the base effect. India continued to have the fastest major economic growth, with China’s growth in the April-June quarter coming in at 0.4%.

There are several positive aspects of the most recent Q1 gross domestic product (GDP) growth figures that are essential for igniting additional growth. Gross fixed capital formation, a crucial activity that quickens economic expansion, increased to 34.7% from 32.8%, the highest level in ten years.

Private final consumption expenditure, which accounts for 60% of India’s GDP and is another important driver of economic growth, increased as well, from 54% in Q1 2021–22 to 59.9% in Q1 2021–22. In the months of April and June of this year, the gross value added (GVA) increased by 12.7% to Rs 34.41 lakh crore.

 Finance Secretary TV Somanathan said “A drag in the form of government final consumption expenditure (GFCE) went down to 11.2 per cent as against 12.6 per cent in the Q1 of last fiscal. Fiscal deficit narrowed to 20.5 per cent of the annual target in Q1 compared to 21.3 per cent in the same period last year. “This will help the government meet fiscal deficit target of 6.4 per cent of the GDP.”

According to information provided by the National Statistical Office, the GDP increased by 20.1% over the equivalent April-June period of 2021–22. (NSO). In the first quarter of 2020–21, it had shrunk by 23.8%. The estimated 13.5% is less than the 16.2% that the RBI had forecast, but it is still close to the estimated 13% of the ratings agency ICRA.

The nominal GDP, or GDP at current prices, is predicted to reach Rs 64.95 lakh crore in Q1 2022–23, up from Rs 51.27 lakh crore in Q1 2021–22, or an increase of 26.7% from 32.44% a year earlier. According to estimates, real GDP will reach Rs 36.85 lakh crore in Q1 2022–23. Due to a national lockdown, it was just Rs 27.03 lakh crore in Q1 2020-21 and Rs 32.46 lakh crore in Q1 2021-22.

Compared to 2.2% a year before, the farm sector’s GVA increased to a healthy 4.5%. But compared to an increase of 49% in the same period last year, GVA growth in manufacturing shrank by 4.8%. Mining saw a 6.5% GVA rise compared to an earlier 18% growth. It decreased from 71.3 percent to 16.8 percent in the building sector. In comparison to a year ago, the electricity, gas, water supply, and other utility services segment increased by 14.7% in the quarter.

In the services sector, it was 25.7% compared to 34.3% the year before. Financial, real estate, and professional services all experienced growth of 9.2% over the previous year. Defense, public administration, and other services all experienced increase of 26.3%, compared to 6.2% in the first quarter of the previous fiscal year.

 

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