India’s GDP growth jumps to 7.8% in April-June quarter: Govt data

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 (August 31).

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.

‘Reflects economy’s resilience’

Meanwhile, Anshuman Magazine, Chairman and CEO-India, South-East Asia, Middle East & Africa, CBRE, said, “India’s GDP growth of 7.8 per cent in Q1 2023-24, the highest in four quarters, showcases a notable economic performance, reflecting the economy's resilience despite various challenges. The robust growth in the services sector, higher capital expenditure, strong consumption demand, and the resurgence in manufacturing activity stand out as key drivers, underscoring the adaptability of our industries.”

“Despite prevailing elevated interest rates, the economy has managed to not only navigate the headwinds but also capitalize on the opportunities. The convergence of strong services growth and a revival in manufacturing underscores the concerted efforts of various sectors and policies to propel our economy forward. This momentum lays a solid foundation for sustained growth ahead,” he added.

(With agency inputs)