According to data released by the National Statistical Office (NSO) on Thursday, there was a growth of 7.8 percent in India’s total domestic production (India’s GDP) during the first quarter of 2023-24, whereas in the same quarter last year, it was 13.1 percent.
This growth rate surpasses the previous quarter’s growth rate of 6.1 percent. However, compared to the recorded growth of 13.1 percent in the first quarter of the financial year 2022-23, this pace is relatively slower.
In addition, India maintains its position as the fastest-growing major economy, with a GDP growth rate of 7.8 percent for the April-June quarter, while China’s GDP growth remained at 6.3 percent.
The government stated, “GDP quarterly estimates are based on indicator-based methodologies and are compiled using the benchmark indicator approach, i.e., the available quarterly estimates for the past year are referenced to the benchmark year, derived using relevant indicators that represent sectoral performance.”
As per NSO data, there was a growth of 3.5 percent in the agriculture sector, which is an improvement from 2.4 percent during the same period of the financial year 2022-23.
However, during the initial quarter of the current financial year, the pace of growth in the manufacturing sector slowed to 4.7 percent, compared to 6.1 percent observed 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 percent for the entire financial year. According to Mint’s report, these figures were 8 percent for Q1, which were subsequently revised.
The International Monetary Fund (IMF) has adjusted its perspective, raising India’s total domestic production growth to 6.1 percent in 2023.
In June, Fitch Ratings also revised its previous estimate for India’s economic growth in the financial year 2023-24 (FY24), increasing it from the earlier prediction of 6 percent to 6.3 percent.