Economy surprises with 7.2% growth for FY23

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During the financial year 2022-23, the GDP growth rate stood at 7.2 percent, which is better than expectations. The government had previously projected a growth rate of 7 percent. The Reserve Bank of India (RBI) also anticipated a 7 percent growth rate. However, the actual growth figures have surpassed both the government’s and RBI’s estimates.

According to the government’s data, the size of India’s GDP at constant prices during the financial year 2022-23 was Rs 160.06 lakh crore, compared to Rs 149.26 lakh crore in the financial year 2021-22. However, the GDP growth in 2022-23 is lower than the previous year, as the growth rate registered during 2021-22 was 9.1 percent. The higher growth in 2021-22 was mainly due to the low base effect of the financial year 2020-21, which was impacted by the COVID-19 pandemic.

Nominal GDP or GDP at Current Prices in the year 2022-23 is estimated to attain a level of Rs 272.41 lakh crore ($3.3 trillion), as against Rs 234.71 lakh crore ( $2.8 trillion) in 2021-22, showing a growth rate of 16.1 per cent.

The significant contribution to GDP comes from private consumption, and during the financial year 2022-23, there has been growth in private consumption as well as exports and imports. However, the government expenditure has witnessed a decline. Compared to the financial year 2021-22, private consumption recorded a growth rate of 7.52 percent, reaching Rs 93.59 lakh crore in 2022-23.

Sector-wise Growth: During the financial year 2022-23, the trade, hotel, transport, and communication sector recorded the highest growth, with a growth rate of 14 percent. The construction sector ranked second with a growth rate of 10 percent. The agriculture sector witnessed a growth rate of 4 percent, while the manufacturing sector recorded the lowest growth rate of 1.3 percent.