India’s economy recorded 6.3% growth in the July-September period of 2022 (QFFY23) as against the explosive 13.5% growth in the previous quarter, data released by the ministry of statistics and programme implementation show. India’s gross domestic product (GDP) growth rate stood at 8.4% in the same period last year.
Released on November 30, 2022, the numbers for QFFY23 are in line with the Reserve Bank of India’s growth forecast for the period.
Nominal GDP or GDP at current prices in Q2 FY23 is estimated at Rs 65.31 lakh crore, as against Rs 56.20 lakh crore in Q2FY22, showing growth of 16.2% as compared to 19% in Q2 2021-22.
Samantak Das, chief economist and head of research at JLL India is of the view that these numbers are impressive, considering the strong countervailing forces like high inflation and global headwinds playing havoc on economic activities.
“The construction sector’s real growth in GVA at 6.6% is quite impressive, keeping in mind the monsoon impact and high cost of factor inputs. We believe sector growth is likely to improve in the quarters to come back with the reduction in inflationary pressure and higher on-ground activities pertaining to infrastructure projects,” Das said.
Growth rate in construction sector for the quarter stood at 6.6% as against the 16.8% in the preceding quarter.
“Q2 growth reflects the normalisation of the growth rate due to the waning base effect. At 6.3%, India’s growth rate continues to be aided by strong domestic demand coupled with strengthening activity in the services sector. This indicates resilient progress during the quarter despite global headwinds. Government spending and private investments are expected to sustain the growth momentum,” says Anshuman Magazine, chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE.
Meanwhile, rating agency Nomura has said a broad-based slowdown may be on the anvil.
“We believe India’s growth rate cycle has peaked and a broad-based slowdown is underway,” Nomura economists Sonal Varma and Aurodeep Nandi said in a note on November 30, 2022. “While lower inflation should help support private consumption in coming months, the lagged effects of tighter financial conditions and weak global demand will weigh on both investment and exports, while the post pandemic catch-up in services is largely complete,” they added.
An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
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