Q2 GDP in line with expectations, on track for 6.8-7% growth in FY23: CEA

Chief Economic Adviser (CEA) Anantha Nageswaran on Wednesday said that second quarter GDP growth of 6.3% is in line with expectations and with the continued economic recovery it is expected to be in the range of 6.8% to 7% in the current financial year 2022-23 (FY23). On price spiral, Nageswaran said retail inflation in the country may have peaked and is likely to ease in the coming months.

“Real GDP growth at 6.3% in the second quarter of the fiscal is in line with expectations. The Indian economy has continued the recovery from the pandemic. Indian economy is growing despite the global monetary tightening and commodity price shock caused by the geo political situation,” CEA said post the release of GDP numbers by the government.  

“Real GDP or GDP at constant (2011-12) prices in Q2, 2022-23 is estimated at ₹38.17 lakh crore, as against ₹35.89 lakh crore in Q2 2021-22, showing a growth of 6.3% as compared to 8.4% in Q2 2021-22,” said the ministry of statistics and programme implementation.

Agriculture registered a gross value added (GVA) growth of 4.6% in the June-September quarter, while manufacturing witnessed a decline of 4.3% followed by mining which witnessed a contraction of 2.8%, according to the data released by the centre.  

“Manufacturing has shown a decline but most of the sectors have shown overall growth rate. It is heartening that the capital formaton rate in Q2 is similar to that of Q1. India’s growth trajectory is over and above the other nations,” Nageswaran added.

“On the service front, barring domestic air passenger, other indicators of the service sector is expanding robustly. There is a strong momentum in credit growth. Demand for credit is a sign of growth coming in every sectors,” he said.  

On prices hike, Nageswaran pointed out that current inflation rate is well below the peak of 7.8% seen earlier this year while in many other nations are still not sure whether inflation has peaked.