India’s GDP growth hits 7.8%

Overall, India’s GDP growth of 7.8% in Q4 FY23 paints a positive picture of the country’s economy, especially considering the sluggish global economic scenario.

New Delhi, India: According to recent data released by the Ministry of Statistics and Programme Implementation, India’s gross domestic product (GDP) grew at a rate of 7.8% in the fourth quarter of the financial year 2022-23, up from 6.5% in the previous quarter. This growth is largely attributed to the significant improvement in the services sector and increased capital expenditure.

The services sector, which accounts for over 50% of India’s GDP, grew at a rate of 8.1% in Q4 FY23, compared to 6.9% in the previous quarter. Within the services sector, trade, hotels, transport, and communication saw a growth rate of 8.9%, while finance, real estate, and professional services grew at a rate of 7.8%.

The expansion in the services sector was driven by factors such as increased consumer spending, higher demand for housing, and improved business sentiment. Additionally, the government’s efforts to promote digital payments, e-commerce, and tourism have also contributed to the sector’s growth.

Another key factor contributing to India’s GDP growth is the increase in capital expenditure. The data shows that capital expenditure grew at a rate of 10.4% in Q4 FY23, compared to 7.2% in the previous quarter. This surge in capital expenditure indicates increased investment in sectors such as infrastructure, manufacturing, and construction, which bodes well for long-term economic growth.

Moreover, the agriculture sector also performed well, growing at a rate of 4.1% in Q4 FY23, compared to 2.8% in the previous quarter. This growth is primarily due to the increase in crop production, particularly rice, wheat, and pulses.

However, the industrial sector, which includes mining, manufacturing, and electricity, gas, and water supply, grew at a slower pace than expected, recording a growth rate of 6.4% in Q4 FY23, down from 7.2% in the previous quarter. This slowdown is mainly attributed to the decline in mining activity and the contraction in the manufacturing sector.

Overall, India’s GDP growth of 7.8% in Q4 FY23 paints a positive picture of the country’s economy, especially considering the sluggish global economic scenario. The growth in the services sector and increased capital expenditure are promising signs that suggest sustained economic momentum in the coming quarters. However, the industrial sector’s performance remains a concern and requires attention from policymakers to address the issues hindering its growth.