Context: India’s GDP Growth in the January-March period was higher than the 4.5% expansion in the previous October-December quarter of 2022-23 as per data released by the National Statistical Office (NSO).
- India’s GDP grew 6.1% in the fourth quarter of 2022-23, pushing up the annual growth rate to 7.2%.
- Growth in the January-March 2023 period was higher than the 4.5% expansion in the previous October-December quarter of 2022-23.
| Gross Value Added (GVA)
- The Gross Value Added (GVA) has risen 7% in 2022-23, compared with 8.8% in 2021-22.
|Revised GDP and GVA Estimates
- GDP: The first quarter’s GDP growth in 2022-23 is now pegged at 13.1%, followed by a 6.2% rise in the second quarter and 4.5% growth in the third, up from the 4.4% estimated in February.
- GVA: The growth estimates for the first and second quarters were reduced to 11.9% and 5.4% respectively, while the third quarter GVA growth was revised higher to 4.7%, from the 4.6% reckoned earlier.
|Sectors Witnessing Growth
- The agricultural GVA grew 4%, up from 3.5% in the previous year.
- The financial, real estate and professional services sectors GVA grew 7.1%, compared with 4.7% in 2021-22.
- The GVA of the trade, hotels, transport, and communication sectors, as well as services related to broadcasting grew 14%, marginally faster than in the previous year.
- The manufacturing sector registered 4.5% surge as compared to -1.4% in Q3FY2023 and 0.6% in Q4 FY2022.
|Sectors with Marginal Growth
- Mining and quarrying GVA growth slowed to 4.6% from 7.1%.
- Electricity, gas, water supply and other utility services’ GVA rose 9%, only slightly slower than 9.9% in 2021-22.
- Public administration, defence and other services’ GVA grew only 7.2% in 2022-23, compared to 9.7% in the previous year.
- GVA from the employment-intensive construction sector grew 10% in 2022-23, from 14.8% in 2021-22.
|Factors Responsible for Expansion
- Exports of goods and services accounted for 23.5% of GDP, the highest since 2014-15.
- Private consumption hit the highest level since 2006-07 at 58.5%.
- Gross fixed capital information, reflecting a sustained increase, is at the highest point since 2013-14 at 34% of GDP.
- The agriculture sector’s growth and the revival of the manufacturing industry have propelled India’s economy towards a brighter and more prosperous future.
- India’s 6.1% GDP growth was the fastest among major economies in the fourth quarter.
- Amid a global slowdown, maintaining growth over 6% will be challenging.
- There needs to be more investment in the private sector.