GDP GROWTH SLOWS TO 4.4%

India's economy to grow at 7 pc in FY23: Govt data

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India's GDP growth slid to a three-quarter low of 4.4 per cent in the third quarter of October-December FY 2022-23 as a loss in growth momentum due to contraction in manufacturing sectors, mitigation of a favourable base effect and slowdown in pent up demand due to high inflation and interest rates put a brake on an uneven recovery, even as India's output of eight core industries registered a year on 7.8 percent growth in January 2023.

The quarterly estimates of GDP for Q3 FY23 released by the National Statistical Office (NSO) of the Ministry of Statistics and Programme Implementation (MoSPI) on Tuesday projects GDP growth based on the 2nd Advanced Estimates - a 5.1 per cent in Q4 FY2023, and is higher than the current expectation of analysts. For FY2023, India’s GDP growth as per the NSO 2nd AE, remains unchanged at 7.0 per cent, which will be lower than the 9.1 per cent in 2021-22.

The Finance Ministry’s latest economic outlook of January 2023 has already cautioned that global slowdown is expected to continue in the coming months on the back of weak global demand due to monetary tightening. There is also likelihood of El Nino conditions in India which will result in higher inflation and lower agriculture output. Capital formation held up overall GDP growth in 3Q, with real gross value addition growing 4.6 per cent in Q3 FY23 as compared to 12.1 per cent and 5.5 per cent yoy in Q1 and Q2 of FY23 respectively.