GDP Growth Slowed to 7.6% in Q2 from 7.8% in Q1
India’s economy expanded by 7.6 percent in the September quarter of this fiscal year, maintaining its position as the quickest-growing large economy, primarily due to improved performance in the manufacturing, mining, and services sectors as per government figures unveiled on Thursday.
The gross domestic product (GDP) grew by 6.2 percent in the period of July-September 2022-23.
India retained its status as the fastest-growing major economy, while China recorded a 4.9 percent growth in the July-September 2023 period.
Prime Minister Narendra Modi highlighted the resilience and vigor of the Indian economy amidst challenging global conditions, based on the GDP growth figure.
“The Q2 GDP growth statistics demonstrate the resilience and strength of the Indian economy during these challenging global times. We are dedicated to ensuring rapid growth to generate more opportunities, swiftly eradicate poverty, and enhance the ‘ease of living’ for our citizens,” stated PM Modi.
According to data from the National Statistical Office (NSO), the growth of the agriculture sector’s Gross Value Added (GVA) decreased to 1.2 percent in the September 2023 quarter from 2.5 percent a year ago.
The GVA growth in financial, real estate, and professional services was 6 percent, down from 7.1 percent in the previous year’s quarter.
The manufacturing sector witnessed a growth of 13.9 percent in the second quarter of the current fiscal year compared to a contraction of 3.8 percent in the previous year’s period.
The data showed an increase in the output (GVA) in the ‘mining and quarrying’ sector to 10 percent in the second quarter from a 0.1 percent contraction a year ago.
Electricity, gas, water supply, and other utility services expanded by 10.1 percent from 6.1 percent.
The construction sector saw a year-on-year growth of 13.3 percent in the second quarter compared to 5.7 percent.
The GDP growth rate during the April-June quarter of 2023-24 remained steady at 7.8 percent.
As per the NSO statement, “Real GDP or GDP at Constant (2011-12) Prices in Q2 2023-24 is estimated to reach Rs 41.74 lakh crore, showing a growth of 7.6 percent as compared to 6.2 percent in Q2 2022-23.”
Nominal GDP in Q2 2023-24 is estimated at Rs 71.66 lakh crore, reflecting a growth of 9.1 percent compared to 17.2 percent in Q2 2022-23.
The data further revealed that GDP at constant (2011-12) prices in April-September 2023-24 (H1 2023-24) is estimated at Rs 82.11 lakh crore, showing a growth of 7.7 percent compared to 9.5 percent in H1 2022-23.
GDP at current prices in H1 2023-24 is estimated at Rs 142.33 lakh crore, indicating a growth of 8.6 percent compared to 22.2 percent in H1 2022-23.
Moreover, the output of eight crucial infrastructure sectors surged by 12.1 percent in October 2023 compared to a 0.7 percent expansion in the same period of the previous year, primarily due to increased production of coal, steel, cement, and electricity.
The government’s fiscal deficit reached 45 percent of the full-year budget estimate by the end of October, according to data from the Controller General of Accounts (CGA) released on Thursday.