GDP expanded 6.1% in 2022-23’s last quarter

Vikas Dhoot

Full-year manufacturing GVA slid to 1.3% from 11.1% ; only three of eight sectors, including farming and services, recorded higher GVA for FY23; despite Q4 uptick, consumption remained tepid

GDP expanded 6.1% in 2022-23’s last quarter

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Thursday, 1st June 2023
Page No. 1
Chennai Print Edition
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India’s GDP growth accelerated to 6.1% in the January to March 2023 quarter, lifting the economy’s expansion in 2022-23 to 7.2% from 7% estimated earlier, according to the provisional national income data released by the National Statistical Office (NSO) on Wednesday.

The Gross Value Added (GVA) in the economy is reckoned to have risen 7% in 2022-23, compared with 8.8% in 2021-22. Manufacturing GVA growth slid to just 1.3% from 11.1% a year earlier, despite a 4.5% rebound in the final quarter after six months of contraction.

Economists noted that though several sectors delivered a positive surprise, especially in the last quarter of the year, consumption remained tepid and the overall growth pattern remains uneven.

Farm, services growth

The farm and services sectors buoyed economic outcomes as just three of eight broad economic activity segments recorded higher GVA growth than in 2021-22.

The agricultural GVA grew 4%, up from 3.5% in the previous year. The financial, real estate and professional services sectors saw their GVA grow 7.1%, compared with 4.7% in 2021-22. The GVA of the trade, hotels, transport, and communication sectors, as well as services related to broadcasting grew 14%, marginally faster than in the previous year.

Revised GDP, GVA

The NSO also revised GDP and GVA numbers lower for the first half of last year but bumped up the third quarter figures slightly. The first quarter’s GDP growth in 2022-23 is now pegged at 13.1%, followed by a 6.2% rise in the second quarter and 4.5% growth in the third, higher than the 4.4% estimated in February.

In GVA terms, the final three months of 2022-23 recorded a three-quarter high of 6.5%.

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