NEW Delhi
: India’s gross domestic product (GDP) growth slowed in the July-September quarter due to a range of factors, including high inflation and rising interest rates, the impact of the geopolitical situation and the contraction in the manufacturing and mining sectors, but policymakers say growth is expected to be in the range of 6.8%-7% for 2022-23.
Data released by National Bureau of Statistics (NSO) on Wednesday showed the economy expanded at a slower-than-expected rate of 13.5% for the April-June period as well as an 8.4% rate for the July-May period. 9 years 2021-22. However, the latest results are in line with the Reserve Bank of India (RBI) estimate of 6.3% in the second quarter.
The resilient agriculture sector, which grew 4.6% despite unseasonal rains, and strong growth in the services and construction sectors supported the expansion in the second quarter of this financial year. . The service sector benefits from the lifting of Covid restrictions.
Economists say a positive trend is a rebound in growth on a sequential (quarter-to-quarter) basis. Commercial hotels, transportation, communications and broadcasting-related services posted strong growth over the three-month period at 14.7%. Economists say all sectors are above pre-pandemic levels.
“The economy is on track to post 6.8-7% growth in the current fiscal. If you look at festival sales, bank credit growth, purchasing managers index, the economy has maintaining momentum, especially after global headwinds.” Chief economic adviser (CEA) V Anantha Nageswaran told reporters, adding that domestic demand will drive growth and the external environment is uncertain and exports are not performing as well as last year.
Several agencies, economists, investment banks and maintenance agencies have cut India’s GDP growth rate for the period 2022-2023 due to the impact of the war in Ukraine, disruptions in the supply chain. supply, high inflation and tightening interest rates.
The key manufacturing sector was the main concern, falling 4.3%, while the mining sector fell 2.8% in the September quarter. “The economy is expanding on a gradual basis, showing signs of returning to normal, in terms of industry growth rates and their share of GDP. We see strong signs in the epidemic sector. season, but production and exports are expected to slow in the coming months,” said Rahul Bajoria, MD, Barclays, in a note.
