According to data released by the National Statistical Office (NSO) on Tuesday, India’s Gross Domestic Product (GDP) growth slowed to a three-quarter low of 4.4% in October–December 2022–23. Primarily because of a 1.1% contraction in manufacturing, as well as weaker private consumption demand and government expenditure.
The third quarter’s slower growth—down from 6.3% in July-September and 13.2% in the April-June quarter. Reflected the impact of mild demand for goods and services as well as exports. Also rising input costs and interest rates, as the Reserve Bank of India continued to emphasize “withdrawal of accommodation.”
All the Data released by National Statistical Office:
The second advance projections from NSO have kept the growth expectation at 7% for the entire fiscal year 2022–2023. Moreover, figures for past fiscal years that had been updated were made public. As a result, the growth rate for fiscal year 2021–2022 was increased by 40 basis points, from 8.7% to 9.1%. The GDP forecast for the Covid-period was revised upward as well, moving from (-) 6.6 to (-) 5.8 percent for 2020–21. The fourth quarter GDP estimate of 5.1% is significantly higher. Higher than the Central Bank of India’s (RBI) Q4 projection of 4.2% from its December policy review.
Projections for increase in the GDP:
The GDP is anticipated to expand at a pace of 5.1% in the January–March quarter, with a projected 7% growth rate for the entire fiscal year. With the revisions made for the previous fiscal year, the GDP components for FY23 also underwent revision: gross fixed capital formation, a measure of investment, is expected to increase by 11.2% as opposed to an earlier estimate of 11.5%; government final consumption expenditure has been revised down to 1.2% from 3.1% earlier; private final consumption expenditure is now estimated at 7.3% from 7.7% earlier.
According to information provided on Tuesday, India’s nominal GDP, which takes inflation into account, is predicted to increase by 11.2% from October through December, compared to 14.3% during the same time last year.