India’s Gross Domestic Product (GDP) experienced a 7.8 per cent expansion during the initial quarter of the fiscal year 2023-24, as per the National Statistical Office (NSO) data released on Thursday.
This growth rate surpasses the previous quarter’s increase of 6.1 per cent. However, the pace is comparably slower than the 13.1 per cent growth registered during the first quarter of the fiscal year 2022-23.
With this, India maintains its position as the fastest-expanding major economy, with China’s GDP growth standing at 6.3 per cent for the April-June quarter.
“Quarterly Estimates of GDP are indicator based and are compiled using the benchmark-indicator method, i.e., quarterly estimates available for the previous year referred to as the benchmark year are extrapolated using the relevant indicators reflecting the performance of sectors”, the government said in a statement.
According to NSO data, the agricultural sector witnessed a growth of 3.5 per cent, marking an improvement from the 2.4 per cent recorded in the same period of the fiscal year 2022-23.
However, the pace of growth in the manufacturing sector eased to 4.7 per cent during the initial quarter of the current fiscal year, a decline from the 6.1 per cent seen in the corresponding period of the previous year.
Following the Monetary Policy Committee (MPC) meeting in August, the Reserve Bank of India (RBI) anticipated a growth rate of 6.5 per cent for the entire fiscal year. Breaking this down on a quarterly basis, the figures stood at 8 per cent for Q1, Mint reported.
The International Monetary Fund (IMF) has adjusted its outlook for India’s GDP growth in 2023, upgrading it to 6.1 per cent.
In June, Fitch Ratings also revised its prediction for India’s economic growth in the fiscal year 2023-24 (FY24), elevating it to 6.3 per cent from the prior forecast of 6 per cent.
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