The National Statistical Office (NSO) data, released on Thursday, reveals that India’s Gross Domestic Product (GDP) expanded by 7.8 percent in the first quarter of the fiscal year 2023-24. This growth rate exceeds the 6.1 percent growth of the previous quarter but is notably lower than the 13.1 percent growth recorded in the same quarter of the fiscal year 2022-23.
India maintains its status as the fastest-growing major economy, outpacing China’s GDP growth of 6.3 percent for the April-June period. The government explained that the Quarterly Estimates of GDP are based on indicators and use a benchmark-indicator method, projecting quarterly estimates from the previous year using relevant performance indicators.
According to NSO data, the agricultural sector saw a growth of 3.5 percent, an improvement from the 2.4 percent recorded in the corresponding period of the fiscal year 2022-23. However, growth in the manufacturing sector slowed to 4.7 percent in the initial quarter of the current fiscal year, down from 6.1 percent in the same period last year.
After the Monetary Policy Committee (MPC) meeting in August, the Reserve Bank of India (RBI) projected a 6.5 percent growth rate for the entire fiscal year, with 8 percent growth anticipated for Q1. The International Monetary Fund (IMF) adjusted its GDP growth outlook for India in 2023 to 6.1 percent. Similarly, Fitch Ratings revised its forecast for India’s economic growth in fiscal year 2023-24 to 6.3 percent from the earlier prediction of 6 percent, as of June.
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