GDP expands 7.8% on services boost
NEW DELHI : The Indian economy expanded 7.8% in the first quarter of the current fiscal year on higher government and private capital expenditure and strong services growth, official estimates released on Thursday showed. A Mint poll of 22 economists had estimated the growth in gross domestic product (GDP) at around 7.8%. In the fourth quarter of 2022-23, GDP growth stood at 6.1% against a 4.4% growth rate witnessed in the preceding three months, according to data from the National Statistics Office (NSO).
Real GDP at constant (2011-12) prices for the June quarter is estimated to reach ₹40.37 trillion, marking a 7.8% expansion from ₹37.44 trillion a year ago, according to the ministry of statistics and programme implementation (MoSPI). Nominal GDP or GDP at current prices is estimated at ₹70.67 trillion, reflecting an 8% increase from ₹65.42 trillion in the year-ago quarter, the ministry said. While robust domestic demand and manufacturing and services activity likely aided growth in the June quarter, a low-base effect could have helped as well.
The statistical effect of a dip in trade deficit and the deflation method used to compute GDP may have bumped up the figures as well. “Overall, this (GDP) is a good number. The fact that nominal GDP growth was 8% and real GDP growth was 7.8% signals that the momentum in economic activity in general is not driven by price-related distortions," chief economic adviser V.
Anantha Nageswaran told reporters. He said both the government and the Reserve Bank of India (RBI) are holding on to their 2023-24 growth forecast of 6.5%. He said the July data is showing strong momentum except for merchandise export/non-oil exports.
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