Due to low base effect, India's GDP growth rate in June quarter at 13.5%

1 Sep 2022 , 08:35 AM

Due to improved performance in the agriculture and services sectors, India’s GDP expanded by 13.5% from April to June of this fiscal year, the quickest rate in the previous four quarters, according to government figures released on Wednesday. India continued to have the fastest-growing major economy, whereas China only saw 0.4% growth in the April to June 2022 quarter.

According to information provided by the National Statistical Office, the Indian economy expanded by 20.1% between April and June 2021—22. (NSO). The GDP increased by 8.4% from July to September 2021, 5.4% from October to December 2021, and 4.1% from January to March 2022.

The first quarter growth rate of 13.5% is lower than the earlier this month announced 16.2% prediction from the RBI. According to the NSO statement, “Real GDP or Gross Domestic Product (GDP) at Constant (2011—12) Prices in Q1 2022—23 is anticipated to achieve a level of Rs36.85 trillion, as opposed to Rs32.46 trillion in Q1 2021—22, demonstrating a rise of 13.5% as compared to 20.1% in Q1 2021—22.”

In absolute terms, the real GDP for the April to June 2020 quarter was Rs27.03 trillion. Due to shutdown limitations designed to stop the transmission of the coronavirus, it had decreased by 23.8% in the first quarter of 2020—21.

According to the figures, from April to June of this year, Gross Value Added (GVA) increased by 12.7% to Rs34.41 trillion. Compared to 2.2% a year earlier, the agriculture sector’s GVA increase in the first quarter was 4.5%. However, from 49% in the same quarter last year, the manufacturing sector’s GVA growth dramatically slowed to 4.8% this quarter.

In the quarter, mining GVA growth was 6.5% as opposed to 18%. Additionally, the construction sector’s GVA slowed, falling from 71.3% to 16.8% in the quarter. Compared to the same period last year, the electricity, gas, water supply, and other utility services segment expanded by 14.7% in the third quarter.

Trade, hospitality, transportation, communication, and broadcasting-related services saw GVA increase by 25.7% in the first quarter compared to 34.3% overall. Financial, real estate, and professional services all had first-quarter growth of 9.2% over the same period last year.

In comparison to the first quarter of the previous fiscal, public administration, defense, and other services had an increase of 26.3% instead of 6.2%. According to the NSO, the Nominal GDP or GDP at Current Prices is projected to reach Rs 64.95 trillion in Q1 2022—23 as opposed to Rs51.27 trillion in Q1 2021—22, representing a rise of 26.7% as opposed to 32.4% a year before.