India’s GDP growth slows down to 4.4% in October-December quarter, economy to grow at 7% in FY23

The government released the second advance estimate of the GDP (Gross Domestic Product) for 2022-23 along with December quarter data today.

India

oi-Madhuri Adnal

India’s
economic
growth
decelerated
to
4.4
per
cent
in
the
October-December
quarter
of
this
fiscal
mainly
due
to
a
contraction
in
the
manufacturing
sector.

The
GDP
(Gross
Domestic
Product)
growth
was
11.2
per
cent
in
October-December
2021
and
6.3
per
cent
in
July-September
2022,
showed
the
data
released
by
the
National
Statistical
Office
(NSO)
on
Tuesday.

The
manufacturing
sector’s
output,
as
per
the
gross
value
added
in
the
third
quarter
of
this
fiscal,
contracted
by
1.1
per
cent
compared
to
a
growth
of
1.3
per
cent
in
the
year-ago
period.

The
NSO
also
released
the
second
advance
estimate
for
the
current
fiscal
and
maintained
its
growth
projection
of
7
per
cent
as
was
estimated
in
the
first
advance
estimate
which
was
released
in
January.

“GDP
at
Constant
(2011-12)
Prices
in
Q3
2022-23
is
estimated
at
Rs
40.19
lakh
crore,
as
against
Rs
38.51
lakh
crore
in
Q3
2021-22,
showing
a
growth
of
4.4
per
cent.
GDP
at
Current
Prices
in
Q3
2022-23
is
estimated
at
Rs
69.38
lakh
crore,
as
against
Rs
62.39
lakh
crore
in
Q3
2021-22,
showing
a
growth
of
11.2
per
cent,”
the
NSO
statement
said.

“Real
GDP
or
GDP
at
Constant
(2011-12)
Prices
in
the
year
2022-23
is
estimated
at
Rs
159.71
lakh
crore,
as
against
the
First
Revised
Estimates
of
GDP
for
the
year
2021-22
of
Rs
149.26
lakh
crore.
The
growth
in
real
GDP
during
2022-23
is
estimated
at
7.0
per
cent
as
compared
to
9.1
per
cent
in
2021-22,”
the
NSO
said.

The
NSO
revised
upward
the
GDP
growth
for
2021-22
to
9.1
per
cent
from
8.7
per
cent
estimated
earlier.

India’s
GDP
growth
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The
national
accounts
data
showed
that
the
farm
sector
gross
value
added
(GVA)
has
grown
by
3.7
per
cent
in
the
third
quarter
compared
to
a
growth
of
2.2
per
cent
a
year
ago.

The
mining
and
quarrying
sector
grew
at
3.7
per
cent
compared
to
5.4
per
cent
a
year
ago.

The
construction
sector
has
grown
by
8.4
per
cent
in
the
quarter
compared
to
0.2
per
cent
growth
a
year
ago.

Electricity,
gas,
water
supply
and
other
utility
services
segment
has
grown
by
8.2
per
cent
compared
to
6
per
cent
growth
a
year
ago.

GVA
growth
in
the
services
sector-trade,
hotel,
transport,
communication
and
services
related
to
broadcasting-was
9.7
per
cent
during
the
third
quarter
against
9.2
per
cent.

Financial,
real
estate
and
professional
services
grew
by
5.8
per
cent
in
the
third
quarter
over
4.3
per
cent
earlier.

Public
administration,
defence
and
other
services
posted
2
per
cent
growth
against
10.6
per
cent
in
the
third
quarter
of
the
last
fiscal.

“Real
GDP
or
GDP
at
constant
(2011-12)
prices
for
the
years
2021-22
and
2020-21
stands
at
Rs
149.26
lakh
crore
and
Rs
136.87
lakh
crore,
respectively,
showing
a
growth
of
9.1
per
cent
during
2021-22
as
compared
to
a
contraction
of
5.8
per
cent
during
2020-21.”

Nominal
Net
National
Income
(NNI)
or
NNI
at
current
prices
for
the
year
2021-22
stands
at
Rs
203.27
lakh
crore
as
against
Rs
172.23
lakh
crore
in
2020-21,
showing
a
growth
of
18
per
cent
during
2021-22
as
against
a
contraction
of
3
per
cent
in
the
previous
year,
it
stated.

Per
Capita
Income
or
Per
Capita
Net
National
Income
at
current
prices
is
estimated
at
Rs
1,27,065
and
Rs
1,48,524
respectively
for
the
years
2020-21
and
2021-22,
it
stated.

Gross
Capital
Formation
(GCF)
at
current
prices
is
estimated
at
Rs
73.62
lakh
crore
for
the
year
2021-22
as
compared
to
Rs
55.27
lakh
crore
during
2020-21,
it
stated.

The
rate
of
GCF
to
GDP
is
31.4
per
cent
during
2021-22
as
against
27.9
per
cent
in
2020-21.
The
rates
of
capital
formation
in
the
years
2011-12
to
2019-20
and
2021-22
have
been
higher
than
the
rate
of
saving
because
of
positive
net
capital
flow
from
RoW
(rest
of
the
world),
it
stated.

In
terms
of
the
share
to
the
total
GFCF
(at
current
prices),
the
highest
contributor
is
Non-Financial
Corporations
followed
by
the
Household
sector,
the
share
of
which
stood
at
44.1
per
cent
and
40.5
per
cent
respectively
in
2021-22,
it
stated.

The
rate
of
GCF
to
GDP
at
constant
(2011-12)
prices
was
31.7
per
cent
in
2020-21
and
35.5
per
cent
in
2021-22,
it
stated.

Gross
savings
during
2021-22
are
estimated
at
Rs
70.77
lakh
crore
against
Rs
57.17
lakh
crore
during
2020-21,
it
stated.

Share
of
non-financial
corporations,
financial
corporations,
general
government
and
household
sectors
in
gross
savings
during
2021-22
stands
at
35.3
per
cent,
8.4
per
cent,
(-)
8.9
per
cent
and
65.3
per
cent,
respectively,
it
stated.

The
rate
of
Gross
Saving
to
GNDI
(Gross
National
Disposable
Income)
for
2021-22
is
estimated
at
30.0
per
cent
as
against
28.4
per
cent
for
2020-21,
it
stated.