New Delhi (TIP)- The country’s GDP at constant prices will grow by over Rs 10 lakh crore more during the current fiscal (FY22-23) as compared to the previous fiscal (FY 2021-22). This translates into growth in real GDP during FY23 at 7% as compared to 8.7% in FY22, according to the First Advance Estimates of National Income released by the National Statistical Office (NSO).

Real GDP or GDP at Constant (2011-12) Prices in 2022-23 is estimated at Rs 157.60 lakh crore, as against the provisional estimate of GDP for 2021-22 of Rs 147.36 lakh crore.

Largely tallies with RBI‘s 6.8% projection

The projections are much lower than government’s earlier forecast of 8-8.5% growth but above the RBI’s projection of 6.8%. The first advance GDP estimates, which are used to work out allocations and other fiscal projections for the next Budget due on February 1, proved to be more optimistic than the actual growth in three out of the last four years. The projections suggest that despite the global headwinds and continued geopolitical uncertainty caused by the Russia-Ukraine conflict, the recovery is on track though there are pressure points. The 7% GDP growth in 2022-23 largely tallies with the RBI’s forecast made in December of GDP growth of 6.8% and the World Bank’s estimation of 6.9%.

Nominal GDP or GDP at Current Prices in 2022-23 is estimated at Rs 273.08 lakh crore, as against the provisional estimate of GDP for 2021-22 of Rs 236.65 lakh crore. The growth in nominal GDP during 2022-23 is estimated at 15.4% as compared to 19.5% in 2021-22.

Was 8.7% in 2021-2022

At constant prices, the GDP will grow by over Rs 10L crore more during the current fiscal as compared to the previous fiscal, as per NSO estimates. Real GDP in 2022-23 is estimated at Rs 157.60 lakh crore, as against the provisional estimate of GDP for 2021-22 of Rs 147.36 lakh crore. Big decline in the output of the manufacturing sector to 1.6% projected as against the growth of 9.9% in 2021-22.

Agri sector It is expected to grow at 3.5% compared to 3% in the previous fiscal.

Mining It is likely to grow at 2.4% from last fiscal’s 11.5% report inside.

The projections show a big decline in the output of the manufacturing sector to 1.6% as against growth of 9.9% in 2021-22. The agriculture sector is expected to grow at 3.5% compared to 3% in the previous fiscal. The mining sector is likely to grow at 2.4% from last fiscal’s 11.5%. Private final consumption expenditure, whose rise could boost demand, is forecast to rise by 7.7% in 2022-23 as compared to the previous fiscal. Gross fixed capital formation is estimated to rise around 11.5% in the current fiscal. The electricity sector is likely to grow at 9%, compared to 7.5% in the last fiscal. Trade and hotels growth is expected to be a healthy 13.7% from last fiscal’s 11.1%, showing the effects of Covid in this contact-intensive industry are wearing off. In finance and real estate, the growth is estimated at 6.4% as against 4.2% in the last fiscal.

                Source: TNS