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India’s latest GDP: NSO i.e. National Statistics Office released the figures of India’s Gross Domestic Product i.e. GDP a few days back. These are the figures for the fourth quarter and have been much better than expected. According to NSO, India’s GDP growth rate has been 7.2 percent in 2022-23. However, in 2021-22 this estimate was 9.1 percent. India registered a GDP growth of 6.1 percent as compared to 4.4 percent in the previous quarter. The GDP growth rate in the fourth quarter has left behind the estimates. The RBI had estimated a growth of 5.1 per cent during the first quarter. At the same time, the growth of GDP for the entire financial year 2022-23 has been 7.2 percent. This growth of GDP is more than RBI’s estimate of 7 percent.
First understand GDP
GDP means Gross Domestic Product ie Gross Domestic Product, it is equal to the total value of all the goods and services produced in the country in any one year. GDP shows the level of economic activity and from this it is known that due to which sectors it has increased or declined. If the GDP figures are low or sluggish, then it is known that the country’s economy is slowing down. It also means that we did not produce enough goods, nor did our service area grow, compared to the previous year or quarter. This also shows the economic development of the country in a fixed period, usually one year. It is necessary for a developing country like India to achieve higher GDP growth rate every year, because our population is the largest in the world and production is very important to meet its needs.
Our National Statistics Office here estimates GDP four times every year i.e. every third month and releases annual development figures. We estimate GDP through a total of four important components or factors. It includes total expenditure of the people, government expenditure, expenditure on investment and gross exports. Real GDP is calculated when the total figure is adjusted relative to inflation. GDP in India is estimated on the basis of data from eight sectors like agriculture, manufacturing, electricity, gas, mining, forestry, hotel, construction, communication, real estate, public services.
GDP improvement due to growth in agriculture and service sector
The contribution of agriculture sector in GDP has increased this time and a sharp increase has been registered in this sector. The GVA of the agriculture sector was 4.7 percent in the last quarter, which has now increased to 5.5 percent. The contribution of the agriculture sector to GDP in India is close to 20 percent and about 40 percent of the population is connected to it. The government has also released the data of development of 8 main areas. The core sector is expected to grow at 3.5 per cent in April 2023, slightly lower than the previous month’s 3.6 per cent. Among the eight core sectors, agriculture sector has grown by 5.5 percent, mining sector by 4.3 percent, construction sector by 10.4 percent, electricity by 6.9 percent, manufacturing sector by 4.5 percent and financial sector by 7.1 percent. At the same time, business and hotel grew at the rate of 9.1 percent. After declining for two consecutive quarters, the GDP growth rate has increased this quarter.
There are signs of renewed buoyancy in the manufacturing sector, while the performance of the services sector has also improved due to adoption of better efficiency. Domestic consumption and investment in India are benefiting from strong prospects for agriculture and allied activities and strengthening consumer confidence. While real GDP (at 2011-12 prices) in 2022-23 160.06 lakh crore has been Rs. The Ministry of Statistics has said that the real GDP growth during 2022-23 has been 7.2 percent this time as compared to 9.1 percent in 2021-22.
However, risks also remain happened
Indicators such as GST collection, electricity consumption and purchasing managers’ index) are indicating that economic activities will continue in April. Although exports and imports have decreased. This has created some risk. Barring monsoon and global political risk, the country’s economic growth rate can remain above the estimate of 6.5 percent in 2023-24. At present, India has been able to present a story of sustainable economic growth with economic, financial and fiscal stability. The GDP figures are surprisingly heartening but not entirely unexpected. The pick-up in the manufacturing sector is making the situation more pleasant, although growth of industries slowed down to a six-month low of 3.5 per cent in April 2023. The pace of growth of basic industry slowed down mainly due to lower production of crude oil, natural gas, refinery products and electricity. While better performance of coal, fertilizer and power sectors, the growth of basic industries is expected to increase in the entire financial year 2022-23. The growth rate was 7.7 percent.
By the way, the fiscal deficit in the financial year 2022-23 was 6.4 percent of GDP, which is in line with the target. Better tax and non-tax revenue collections helped contain the fiscal deficit. When the whole world is grappling with the threat of recession, the GDP growth rate in India shows that we are on the right track and moving towards the right target.
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