India's GDP grew at 13.5% in Q1 FY23

NEW DELHI: India’s economy grew by 13.5% in the April-June period this fiscal — the fastest in the last four quarters — on account of better performance by the agriculture and services sectors, official data showed on Wednesday.

India remained the fastest growing major economy as China registered economic growth of 0.4% in the April-June 2022 quarter. The Indian economy grew by 20.1% in April-June 2021-22, as per the data released by the National Statistical Office (NSO).

The gross domestic product (GDP) expanded by 8.4% in July-September 2021, 5.4% in October-December 2021 and 4.1% in January-March 2022. The first quarter growth at 13.5% is less than the RBI’s projection of 16.2% released earlier this month.

“Real GDP or Gross Domestic Product (GDP) at Constant (2011-12) Prices in Q1 2022-23 is estimated to attain a level of Rs 36.85 trillion, as against Rs 32.46 trillion in Q1 2021-22, showing a growth of 13.5% as compared to 20.1% in Q1 2021-22,” the NSO statement said.

The real GDP in absolute terms stood at Rs 27.03 trillion in the April-June quarter in 2020. It had contracted by 23.8% in the first quarter of 2020-21 on account of lockdown restrictions to curb the spread of coronavirus.

As per the data, Gross Value Added (GVA) grew by 12.7% to Rs 34.41 trillion in April-June this year. The GVA growth in the farm sector is 4.5% in the first quarter compared to 2.2% a year ago.
However, the GVA growth in the manufacturing sector decelerated sharply to 4.8% during the quarter from 49% during the year-ago period.

GVA growth in mining is 6.5% in the quarter compared to 18%. The GVA in the construction sector also decelerated to 16.8% in the quarter from 71.3%.

The electricity, gas, water supply and other utility services segment grew by 14.7% in the quarter compared to 13.8% a year ago.

GVA growth in the services sector — trade, hotel, transport, communication and services related to broadcasting — was 25.7% during the first quarter against 34.3%.

Financial, real estate and professional services grew by 9.2% in the first quarter over 2.3% earlier.

Public administration, defence and other services posted 26.3% growth against 6.2% in the first quarter of last fiscal.

The NSO stated that the Nominal GDP or GDP at Current Prices in Q1 2022-23 is estimated at Rs 64.95 trillion against Rs 51.27 trillion in Q1 2021-22, showing a growth of 26.7% compared to 32.4% a year ago.

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