India's economy grew 13.5 percent year on year in the April-June quarter, the highest annual expansion in a year, according to data released by the National Statistical Office (NSO) on Wednesday.
The gross domestic product (GDP) of India was 13.5% in the three months to June 30, 2022. This, however, is less than the Reserve Bank of India's forecast of 16.2% GDP growth in Q1FY23. India's GDP increased by 20.1% in Q1FY22. GDP increased by 4.1% from January to March of last year.
Earlier this month, the Reserve Bank of India (RBI) stated that the GDP growth rate would probably be around 16.2 percent in the first quarter (April-June) of this fiscal year.
According to the Ministry of Statistics & Programme Implementation, "Real GDP or Gross Domestic Product (GDP) at Constant (2011-12) Prices in Q1 2022-23 is estimated to attain a level of Rs 36.85 trillion, as against Rs 32.46 trillion in Q1 2021-22, showing a growth of 13.5% as compared to 20.1% in Q1 2021-22."
"Nominal GDP or GDP at Current Prices in Q1 2022-23 is estimated at Rs 64.95 trillion, as against Rs 51.27 trillion in Q1 2021-22, showing a growth of 26.7% as compared to 32.4% in Q1 2021-22," MoSPI said in a statement.
The last time India's GDP grew at a faster rate was in April-June 2021 when it was 20.1% higher than the pandemic-depressed level of the previous year.
However, the pace of India's economic growth is expected to sharply slow in the next few quarters as higher interest rates hit economic activity.
Since May, the Reserve Bank of India (RBI) has hiked its benchmark repo rate by 140 basis points, including 50 basis points this month, while warning about the effect of a global slowdown on domestic growth prospects.
Many economists anticipate another rate hike of approximately 50 basis points next month, followed by another 25 basis points the following month.
Consumer spending, which accounts for roughly 55% of economic activity, has taken a hit as food and fuel costs have risen, though monthly inflation has slowed in the last three months.
Because of the base effect, many analysts predicted that the Indian economy would grow at a double-digit rate.
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-PTC News