India’s gross domestic product (GDP) is estimated to grow by 7 percent in 2022-23, the statistics ministry said on January 6. In the fiscal year 2021-22, the GDP had grown by 8.7 percent.
The country’s nominal GDP growth for FY23 is estimated at 15.4 percent versus 19.5 percent in FY22, the ministry said in a release. The gross value added growth for FY23 is estimated at 6.7 percent versus 8.1 percent in FY22, it added.
“Real GDP or GDP at Constant (2011-12) prices in the year 2022-23 is estimated at Rs 157.60 lakh crore, as against the Provisional Estimate of GDP for the year 2021-22 of Rs 147.36 lakh crore, released on 31st May 2022. The growth in real GDP during 2022-23 is estimated at 7.0 percent as compared to 8.7 percent in 2021-22,” the ministry noted.
In terms of GVA, services sector will record a growth of 13.7 percent, as against 11.1 percent in the last fiscal, as per the estimates. The output of manufacturing sector, however, is expected to decelerate to 1.6 percent from 9.9 percent in the year-ago period.
Private consumption in this fiscal is expected to grow by 7.7 percent, as against 7.9 percent in FY22. Gross fixed capital formation is estimated to grow by 11.5 percent in FY23, as compared to a growth of 15.8 recorded last year.
Gross national income and net national income are estimated grow at 6.6 percent in FY23, lower than 8.8 percent in FY22. The per-capita GDP is estimated to grow at 5.8 percent in this fiscal, as compared to a growth of 7.6 percent recorded in the year-ago period.
The government’s first advance estimate for this year’s growth comes ahead of the February 1 presentation of the Union Budget for 2023-24 in Parliament. The finance ministry will use the estimate for this year’s GDP to compute its tax revenue and other estimates for 2023-24.
The first advance estimate for this year’s overall GDP growth is above the Reserve Bank of India’s forecast of 6.8 percent. The RBI had pegged the third and fourth quarter growths at 4.4 percent and 4.2 percent, respectively.
The central bank had, in April 2022, estimated the FY23 GDP growth at 7.2 percent, but lowered it to 7 percent in September. In its latest estimate, it was further slashed to 6.8 percent.