-For FY23, the Indian economy clocked a growth rate of 7.2%. In the previous financial year (FY22), India had seen 9.1% GDP growth
-The fiscal deficit for the last financial year narrowed to 6.4% from a year earlier. It also met the budget gap target, aided by buoyant tax receipts and some fiscal headroom from lower payments
New Delhi, NFAPost: India’s economy grew at 6.1 per cent year-on-year (YoY) in the January to March quarter (Q4) of the financial year 2022-23 (FY23), government data showed. In Q4FY22, gross domestic product (GDP) growth was 4%.
For FY23, the Indian economy clocked a growth rate of 7.2%. In the previous financial year (FY22), India saw GDP growth of 9.1%. This was due to the low base effect of the Covid-19 hit FY21.
In Q3FY23, the GDP growth rate was 4.4%, while it was 6.3 per cent in Q2FY23 and 13.2% in Q1FY23.
The real GDP (2011-12) in the year 2022-23 is estimated to attain a level of Rs 160.06 trillion, as against the First Revised Estimates of GDP for the year 2021-22 of Rs 149.26 trillion. The growth in real GDP during 2022-23 is estimated at 7.2% as compared to 9.1% in 2021-22.
Nominal GDP in the year 2022-23 is estimated to attain a level of Rs 272.41 trillion, as against Rs 234.71 trillion in 2021-22, showing a growth rate of 16.1%, the government release said.
In Q4FY23, manufacturing grew at 4.5%, construction at 10.4 per cent, agricultural at 5.5%, and services sector grew at 6.9%.
The March 2023 round of the RBI’s consumer confidence survey revealed that the current situation is perceived by consumers to have improved on account of optimism in the general economic situation and in household income.
The report said crowding-in effects of the sustained increase in government capex in recent years were expected to spur higher private investment in 2023-24.
The Reserve Bank of India (RBI) Governor Shaktikanta Das said last week that FY23 GDP growth could be more than seven per cent. “According to all the recent trends, it will not be a surprise if GDP growth for last year comes above the official estimate of 7 per cent. All the economic indicators for Q4 show that economic activity sustained momentum, and in fact in all the high frequency indicators which we monitor, the momentum was maintained in Q4,” he had said.
Govt’s fiscal deficit narrows to 6.4% of GDP for FY23, meets target
Fiscal deficit for the previous financial year (FY23) narrowed to 6.4% of gross domestic product (GDP) year-on-year (YoY), according to the data from the Controller General of Accounts (CGA) released.
According to the data, it also met the budget gap target, aided by buoyant tax receipts and some fiscal headroom from lower payments.
While announcing the budget for the current financial year, Finance Minister Nirmala Sitharaman, in the Lok Sabha on February 1, had retained India’s aim to narrow the fiscal gap to 6.4% of GDP from 6.7% in the last financial year, the fiscal deficit target for 2023-24 was pegged at 5.9% of the GDP.
Aiming to reach a fiscal deficit level below 4.5% of the GDP by 2025-26, India has set a target to further narrow the deficit for 2023-24 to 5.9%.
Unveiling the revenue-expenditure data of the Union government for 2022-23, the CGA said that the fiscal deficit in absolute term was Rs 17,33,131 crore (provisional).
The government borrows from the market to finance its fiscal deficit. CGA further said the revenue deficit worked out to be 3.9% of GDP, while the effective revenue deficit was 2.8% of GDP.
