Yesterday, the Government released India’s Q3 growth data for October-December 2022. The National Statistical Office(NSO) released an estimate of the growth rate in FY23 along with some numbers that show the slowdown in the economy due to inflation. According to the Government’s data, the estimated GDP growth for FY23 is expected to increase by 7 percent. As per the economists, the exact figure of the potential growth rate for the next financial year also depends on the global economy. The Reserve Bank Of India(RBI) already projected GDP growth at 6.8 percent, while for the third quarter, it will remain at 4.4 percent.
V Anantha Nagaswaren, Chief Economist Officer, said, “Downside risks to 2023-24 still do prevail and dominate the upside potential to 6.5 percent.”
Here are the highlights of India’s Q3 GDP growth data released by the Government yesterday:
- The revised figure released by the Ministry of Statistics and Programme Implementation(MoSPI) is a reassessment of the COVID year of 2020-2021, in which the GDP growth was (-5.7%) which is lower than its previous estimate of (-7.3%). The average of the accumulated GDP growth from the year 2020 to 2023 is 3.2 percent.
- The Chief Analytics Officer, Suman Chowdhary, also stated that the next fiscal year’s growth rate would depend on factors like the higher interest rate in urban areas, the monsoon factor, and the absence of the base factor. The expected GDP growth for the fiscal year 2024 is estimated at 6 percent.
- India’s GDP growth decelerated to 4.4 percent due to the slowdown in the manufacturing sector. Apart from this, the nominal net income for 2021-2022 was Rs 203.07 lakh crore, which is higher than the previous quarter of Rs 173.2 crore.
The data released by the Indian Government is justified and shows the impact caused by global inflation and Russia-Ukraine War. However, the good news is that India’s Q3 GDP growth rate is expected to remain positive in the next quarter.