Despite the rate of GDP growth coming at a slightly lower rate to the previous year, India remains one of the fastest-growing economies among major global players.
The country’s GDP grew at 6.1 per cent in January-March 2023, the data showed. In the March quarter, India’s manufacturing sector output rose 4.5% on-year, compared to 1.1% contraction in the previous quarter while farm output rose 5.5% compared to 3.7% growth in the same period.
As per the data, the real GDP or GDP at constant (2011-12) prices in the year 2022-23 is estimated to attain a level of ₹160.06 lakh crore, as against the first revised estimates of GDP for the year 2021-22 of ₹149.26 lakh crore.
Services have emerged as a major driver of the economy, comprising more than half of the nation’s GDP. India has been gaining market share in information technology and business consulting work, boosting services activity to the highest in almost 13 years.
GDP growth gives RBI room to pause key rates
India’s resilient growth could reassure the Reserve Bank of India that its monetary tightening hasn’t taken a big toll on the economy and give it more room to pause for a second straight meeting on June 8. This is an outcome predicted by economists in a Bloomberg survey which sees rates on hold for the rest of the year before RBI starts lowering borrowing costs in 2024. The benchmark repo rate is currently at 6.5%
What experts say on India’s GDP numbers
Upasana Bhardwaj, chief economist, Kotak Mahindra Bank
“The sharp upside to the GDP growth suggest the resilience of the Indian economy despite the global slowdown. However, we remain watchful on the sustainability of the strength especially when much of the non-agricultural growth has been led by public investment while consumption remain tepid.”
(With inputs from agencies)