The Indian economy grew by 7.2% in the last financial year, with the gross domestic product (GDP) expanding by 6.1% in the fourth quarter, according to the government. This marks a significant improvement after two consecutive quarters of slower growth. The growth rate of 6.1% in the January-March quarter surpassed the Reserve Bank of India’s (RBI) forecast of 5.9%.
Although the overall GDP growth of 7.2% for FY 2022-23 is lower than the previous year’s 9.1% growth, it slightly exceeds the RBI’s earlier estimate of 7%. The RBI had projected a GDP growth of 7% for the fiscal year, but Governor Shaktikanta Das had expressed optimism that the actual growth could surpass this estimate.
Among the sectors, trade, hotels, and transport recorded the highest growth at 14%. The growth in agriculture, manufacturing, trade, and transport sectors contributed to the overall GDP growth for FY 2022-23. The agriculture sector grew by 4%, surpassing last year’s growth of 3.5%. However, manufacturing growth remained sluggish at 1.3%, compared to 11% growth in the previous year.
Prime Minister Narendra Modi lauded the GDP growth figures, emphasizing the resilience of the Indian economy in the face of global challenges. He stated that the strong performance, along with positive macroeconomic indicators, exemplifies the promising trajectory of the Indian economy and the determination of its people.
Moody’s, a US-based ratings firm, recently predicted that India would remain the fastest-growing G20 economy in the coming years. The firm highlighted factors such as urbanization driving housing and automobile demand, government infrastructure spending boosting the steel and cement sectors, and the country’s commitment to achieving net-zero emissions attracting investments in renewable energy.
Overall, the higher-than-expected GDP growth in the last quarter and the solid performance throughout the fiscal year indicate the resilience and potential of the Indian economy, despite global challenges.
