New Delhi (TIP)- India remained fastest growing major economy of the world in first quarter of the current financial year. India’s gross domestic product (GDP) rose at 7.8 per cent in first quarter of current financial year compared with growth of 13.1 per cent during the same period last year. Sequentially, India’s GDP rose sharply from 6.1 per cent in the previous quarter.
“Real GDP or GDP at Constant (2011-12) Prices in Q1 2023-24 is estimated to attain a level of Rs 40.37 lakh crore, as against Rs 37.44 lakh crore in Q1 2022-23, showing a growth of 7.8 percent as compared to 13.1 percent in Q1 2022-23,” Ministry of Statistics & Programme Implementation said in a press release.
India’s economic growth was however lower than Reserve Bank of India’s GDP growth estimate of 8 per cent for first quarter of current financial year.
India’s nominal GDP that is GDP at current prices in the first quarter of current financial year rose at 8 per cent compared to growth of 27.7 per cent in the same period last year.
“Nominal GDP or GDP at Current Prices in Q1 2023-24 is estimated at Rs 70.67 lakh crore, as against Rs 65.42 lakh crore in Q1 2022-23, showing a growth of 8 per cent as compared to 27.7 percent in Q1 2022-23”, ministry added. Gross Fixed Capital Formation (GFCF), which indicates how much of the new value was added in an economy, rose 7.95 per cent to Rs 1,400,832 crore from Rs 1,297,588 crore.
“Economic activity in Q1 FY-2024 was boosted by a continued catch-up in services demand and improved investment activity, particularly a welcome front-loading in government capital expenditure,” noted Aditi Nayar, chief economist at ICRA. Growth in the service sector, the main engine of Asia’s third-largest economy, hit a 13-year high in July, a private survey showed. Capital expenditure increased to around Rs 2,78,500 crore during April–June 2023 from Rs 1,75,000 crore spent during the same period last fiscal year.