India's GDP Growth Surpasses Expectations, Accelerates to 6.1% in Q4 and 7.2% in FY23
June 1, 2023:
India's gross domestic product (GDP) for the January-March quarter of the previous financial year has exceeded expectations, showing a growth rate of 6.1%, according to data released by the Ministry of Statistics and Programme Implementation on Wednesday, May 31.
The Indian economy has experienced overall growth of 7.2% throughout FY23. In comparison, it had grown by 9.1% in FY22.
During the fiscal year FY23, the economy grew by 13.1%, 6.2%, and 4.5% in Q1, Q2, and Q3, respectively, on an annual basis.
According to a government statement, "Real GDP or GDP at Constant (2011-12) Prices in the year 2022-23 is estimated to reach a level of Rs 160.06 lakh crore, compared to the First Revised Estimates of GDP for the year 2021-22 of Rs 149.26 lakh crore. The growth in real GDP during 2022-23 is estimated at 7.2% as compared to 9.1% in 2021-22."
The Reserve Bank of India had projected a Q4FY23 real GDP growth of 5.1%, while SBI Research predicted a growth rate of 5.5%. Experts have noted that the surprise growth numbers in Q4 were driven by strong performance in the agricultural sector and supported by trade, hotels, and financial services. However, the relatively low growth in private consumption expenditure, which stood at 2.8%, raises concerns about waning private sector demand.
Overall, India's GDP growth has outperformed expectations, indicating positive economic momentum in key sectors and providing optimism for future growth prospects.