India's GDP Expansion Speeds Up To 7.8% During April-June Quarter

India's GDP increased by 7.8% in the first quarter, owing to strong growth in both the manufacturing and services sectors.
India's GDP growth accelerates to 7.8% in Q1FY24
India's GDP growth accelerates to 7.8% in Q1FY24

According to figures released by the Ministry of Statistics and Programme Implementation on August 31, India's GDP increased to a 7.8% growth rate in the first quarter of the current fiscal year (April-June). 

Notably, GDP increased by 6.1% in the fourth quarter of the preceding fiscal year. 

The Reserve Bank of India forecasted 7.8% GDP growth in the April-June quarter, while a Reuters poll of economists predicted 7.7% growth. 

On the other side, economists at the State Bank of India predicted 8.3% growth.

Although this growth rate is lower than the spectacular 13.5% GDP growth seen in the first quarter of the previous year, India's economy has been steadily improving and is projected to strengthen more during the current holiday season.

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India's GDP growth in the first quarter highlights the country's strong economic growth.
India's GDP growth in the first quarter highlights the country's strong economic growth.Image Credit: Reuters

Despite economists' fears about the possible impact of inflation and unpredictable weather on economic growth, India's manufacturing, services, and export sectors have shown healthy growth, accompanied by high tax collection. 

In a recent interview, Finance Minister Nirmala Sitharaman stated that the country's economic development is expected to stay healthy till the end of the year. 

"Until after the new year, you would have enough reasons to believe that the demand situation will only get worse," she said. So I expect the following quarter will be successful as well."

In terms of fiscal management, figures released on Monday revealed that the Centre's fiscal deficit for the first four months of fiscal year 2023-24 was 33.9% of the full-year objective. 

According to information published by the Controller General of Accounts (CGA), the fiscal deficit, which measures the difference between expenditure and revenue, stood at Rs 6.06 lakh crore at the end of July. 

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Infrastructure Sector Sees 8% Growth

This sum was 20.5% of the Budget Estimates for the same period the previous fiscal year.

Furthermore, growth in eight vital infrastructure sectors increased to 8% in July 2023, up from 4.8% in the same month the previous year. 

According to government figures, this expansion was fueled by increased production of coal, crude oil, and natural gas. In July, steel, cement, and electricity production all increased. 

According to data from the Commerce and Industry Ministry, the core sector's growth rate in July was somewhat lower than the previous month's figure of 8.3%.

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