India’s Q1 GDP grows at 13.5%, grows 4.1% compared to the previous quarter, misses estimate target
India’s Q1 GDP Growth Report: Indian Economy continued its recovery from the post-pandemic impact with the Q1 GDP marking an upward trajectory and growing at 13.5%. However,the GDP growth figure is significantly lower in comparison to the Reserve Bank of India’s projection of 16.2% GDP growth in Q1FY23.India missed it growth estimate target of 15.2% pegged by Reuters. The Gross Domestic Product figure for the April-May-June Quarter was a significant improvement over the previous quarter i.e., Jan-Feb-March 2022 in which India’s GDP grew only by 4.1%. In the same quarter last year – April-May-June 2021 the country had witnessed GDP growth of 20.1 percent; however, the figure was magnified due to the economic contraction in the pandemic year.
Real #GDP is estimated to register a growth of 13.5% in Q1 FY 2022-23 as against growth of 20.1% in Q1 FY 2021-22.@Rao_InderjitS@PIB_India@NITIAayog@PMOIndia#GDP#MOSPI#NSO#GoIStats#DataForDevelopment#KnowYourStats
— Ministry of Statistics & Programme Implementation (@GoIStats)
August 31, 2022
Why did India’s GDP Grow at 13.5%?
As per analysts and economists who are reviewing the data shared by the Government, all key sectors seem to have posted positive growth during Q1 of FY23. Many experts have attributed the significant jump in the GDP numbers as compared to the previous Quarter (Jan-Feb-March 2022) to rebound private consumption. Apart from this, several contact-intensive sectors which were reeling under the aftereffects of the pandemic have also seen recovery amid declining COVID-19 fears.Private consumption witnessed a growth of nearly 26 percent.
Nominal #GDP is estimated to grow by 26.7% in Q1 FY 2022-23 as against growth of 32.4% in Q1 FY 2021-22.@Rao_InderjitS@PIB_India@NITIAayog@PMOIndia#GDP#MOSPI#NSO#GoIStats#DataForDevelopment#KnowYourStats
— Ministry of Statistics & Programme Implementation (@GoIStats)
August 31, 2022
As compared to India, neighbouring China’s economy grew 0.4 per cent in the April-June quarter. China’s strict zero-Covid policy locked down several places of key manufacturing and tech hubs leading to a major contraction in its growth figures.
India’s Q1 GDP Growth – Sector-wise Analysis
In terms of sector-wise analysis, all key sectors of the Indian Economy have registered significant growth in the Q1 of FY23. The official press release shared by the ministry of statistics said that “Real GDP or Gross Domestic Product (GDP) at Constant (2011-12) Prices in Q1 2022-23 is estimated to attain a level of ₹ 36.85 lakh crore, as against ₹ 32.46 lakh crore in Q1 2021-22, showing a growth of 13.5 per cent as compared to 20.1 percent in Q1 2021-22.”
The sector-wise analysis can be seen in the table below:
|
Sector |
Q1 FY23 |
Q1 FY22 |
|
Agriculture, forestry & fishing |
4.50% |
2.20% |
|
Mining & Quarrying |
6.50% |
18% |
|
Manufacturing |
4.80% |
49% |
|
Elec, Gas, Water & others |
14.70% |
13.80% |
|
Construction |
16.80% |
71.30% |
|
Trade, Hotels, Trans, etc |
25.70% |
34.30% |
|
Fin, Realty & Prof services |
9.20% |
2.30% |
|
Public admin., Def & others |
26.30% |
6.20% |
|
GVA at basic price |
12.70% |
18.10% |
‘Trade, Hotels, Transport, Communication & Services related to Broadcasting’ (25.7%) and ‘Public Administration, Defence & Other Services’ (26.3%).
[2/2]@Rao_InderjitS@PIB_India@NITIAayog@PMOIndia#GDP#MOSPI#NSO#GoIStats#DataForDevelopment#KnowYourStats— Ministry of Statistics & Programme Implementation (@GoIStats)
August 31, 2022
