GDP grows at 7.8 pc in Apr-Jun, India remains fastest growing economy

NEW DELHI: India recorded an economic growth rate of 7.8 per cent in the April-June quarter of 2023-24 and remained the fastest growing large economy mainly due to better performance by agriculture and financial sectors, government data showed on Thursday.

The Gross Domestic Product (GDP) expanded by 13.1 per cent in the April-June quarter of 2022-23.

India remained the fastest-growing major economy as China posted a 6.3 per cent growth in April-June 2023.

According to the National Statistical Office (NSO) data, the agriculture sector gross value added (GVA) recorded growth of 3.5 per cent, up from 2.4 per cent in the April-June quarter of 2022-23.

The expansion in 'financial, real estate and professional services' GVA was 12.2 per cent, up from 8.5 per cent in the year-ago quarter.

However, the GVA in the manufacturing sector decelerated to 4.7 per cent in the first quarter of the current fiscal compared to 6.1 per cent in the year-ago period.

The growth in Gross Domestic Product (GDP) during the January-March quarter of 2022-23 was 6.1 per cent and 4.5 per cent during October-December.

"Real GDP or GDP at constant (2011-12) prices in Q1 2023-24 is estimated to attain a level of Rs 40.37 lakh crore, as against Rs 37.44 lakh crore in Q1 2022-23, showing a growth of 7.8 per cent as compared to 13.1 per cent in Q1 2022-23," NSO said in a statement.

It further said the nominal GDP or GDP at current prices in the first quarter of 2023-24 has been estimated at Rs 70.67 lakh crore, as against Rs 65.42 lakh crore in the year-ago period, showing a growth of 8 per cent as compared to 27.7 per cent in Q1 2022-23.

The NSO will release quarterly GDP estimates for the July-September, 2023 (Q2 2023-24) on November 30, 2023.

As per the data, the output (GVA) in the 'mining and quarrying' decelerated to 5.8 per cent in the first quarter from 9.5 per cent a year ago, 'electricity, gas, water supply and other utility services' to 2.9 per cent from 14.9 per cent, and 'construction' to 7.9 per cent from 16 per cent.

Key infra sector growth up 8% in July 2023: Data

Growth of eight key infra sectors rose to 8 pc in July 2023 on expansion in production of coal, crude oil, and natural gas, as per data released on Thursday. Production of steel, cement and electricity also grew in July, the data showed. But, the core sector growth was lower in July compared to the previous month when it was 8.3 pc. The production of these sectors expanded by 4.8 pc in July 2022.

The output growth of the eight sectors was also lower at 6.4 pc in April-July 2023-24 against 11.5 per cent in the year-ago period. These industries account for 40.27 pc of the Index of Industrial Production. In July, steel output jumped by 13.5 pc as against 7.5 pc in the same month last year.

Natural gas production rose by 8.9 pc in the month under review against a contraction of 0.3 pc in July 2022. Coal output rose by 14.9 pc in July 2023 against 11.4 pc in July 2022.

The growth rate in the production of refinery products, and fertiliser, slowed down to 3.6 pc, and 3.3 pc as against 6.2 pc each. Crude oil production rose to 2.1 pc in the month under review.