India’s GDP expanded by 7.2% in 2022–2023, spurred by investments and a rise in the services sector. According to official figures, the nation’s GDP growth rate during the January through March quarter of the preceding fiscal year was 6.1%, exceeding forecasts.
This is greater than the third quarter’s rise of 4.5% from October to December.
India’s growth rate decreased to 6.2% in the second quarter from its previous reading of 13.1% in the April-June period. The International Monetary Fund revised its growth forecast for India down to 5.9% in April of this year.
“India’s macroeconomic indicators are still largely positive. According to data from prior quarters, the country’s economic growth has been much greater than practically all other economies as well as the global growth rate, according to Sanjeev Sanyal, a member of the Economic Advisory Council to the Prime Minister (EAC-PM).
In its annual report, the Reserve Bank of India (RBI) stated that, among other factors, including lower commodity prices and strong macroeconomic policies, India is anticipated to maintain its growth pace in 2023–24 with lessening inflationary pressures.
Shaktikanta Das, governor of the RBI, stated last week that India’s growth momentum increased in the fourth quarter.
Importantly, it is anticipated that the inflation rate will also stay below the RBI’s 6 percent guideline for the remainder of this year. The India Meteorological Department (IMD) has forecast a typical monsoon this year despite the looming dangers of a developing El Nino condition. The RBI would have enough room as a result to concentrate on growth. As 47% of the population relies on agriculture for a living, the rural sector is essential to India’s economic revival.
