Gross Domestic Product (GDP) serves as the primary indicator of a nation’s economic advancement and invariably transforms into a focal point of political discourse in India. In a global landscape marred by recession and geopolitical complexities, economic analysts had foreseen a 7.7-8 percent GDP expansion for India. However, the Reserve Bank of India projected an even higher actual GDP growth, surpassing 8 percent.
The most recent data from the National Statistical Office (NSO), unveiled on Thursday, discloses that India’s economy expanded by 7.8 percent in the April-June quarter, a noticeable decline from the 13.1 percent registered in the corresponding period of the previous year. During the January-March quarter of 2022-23, the GDP growth stood at 6.1 percent.
In terms of nominal GDP growth, the figures reached 8 percent, in contrast to the striking 27.7 percent year-on-year growth.
The agricultural sector exhibited a growth rate of 3.5 percent during the April-June period, with the Gross Value Added (GVA) recording a growth of 7.8 percent.
Conversely, electricity generation recorded a 2.9 percent growth, a significant reduction compared to the 14.9 percent year-on-year and 6.9 percent quarter-on-quarter growth.
The mining sector’s expansion stood at 5.8 percent, contrasting with the 9.5 percent year-on-year and 4.3 percent quarter-on-quarter growth. Similarly, trade and hotel industries reported a growth of 9.2 percent, showing a decline from the 25.7 percent year-on-year and 9.1 percent quarter-on-quarter growth.
Financial and real estate sectors registered a growth of 12.2 percent, surpassing the 8.5 percent year-on-year and 7.1 percent quarter-on-quarter growth. Public administration and services also displayed a growth of 7.9 percent, a decrease from the 21.3 percent year-on-year and 3.1 percent quarter-on-quarter growth.
In the manufacturing domain, growth retreated to 4.7 percent during the initial quarter of the ongoing fiscal year, down from the 6.1 percent recorded in the corresponding period of the preceding year.
Government final consumption expenditure observed a slight increase of 0.7 percent, compared to the 1.8 percent year-on-year growth. Gross fixed capital formation growth reached 8 percent, notably lower than the 20.4 percent year-on-year growth. Exports faced a decline of 7.7 percent, a contrast to the 19.6 percent year-on-year growth.
The NSO’s forthcoming release of the quarterly GDP estimates for the July-September period of 2023 (Q2 2023-24) is scheduled for November 30, 2023.