New Delhi: India’s economic growth rose to 13.5 per cent in the first quarter of the current fiscal (2022-23), a huge jump from 4.1 per cent growth recorded in the final quarter of 2021-22.
However, experts said that the GDP growth number was lower than what the market had expected earlier.
This is the first double digit growth in GDP figures in a year, as the last double digit growth was 20.1 per cent recorded in the first quarter of 2021-22.
“Real GDP or Gross Domestic Product (GDP) at constant (2011-12) Prices in Q1 2022-23 is estimated to attain a level of Rs 36.85 lakh crore, as against Rs 32.46 lakh crore in Q1 2021-22, showing a growth of 13.5 percent as compared to 20.1 per cent in Q1 2021-22,” a statement issued by National Statistical Office (NSO) said.
The 13.5 per cent growth in the first quarter of the current fiscal is below Reserve Bank of India’s (RBI) forecast of 16.2 per cent.
Rating agency ICRA had projected a growth of 13 per cent in the first quarter of the current fiscal.
After recording a 20.1 per cent growth in the first quarter of 2021-22, GDP growth had consistently fallen during the entire quarter.
In the second quarter of 2021-22, it slid to 8.4 per cent, in the third quarter, it further fell to 5.4 per cent while in the fourth quarter of the previous fiscal, it came down to 4.1 per cent.
The RBI has projected the economy’s growth at 7.2 per cent for the current financial year.
According to Raghvendra Nath, Managing Director, Ladderup Wealth Management, higher interest rates can hit economic activities in the next few quarters which may slowdown the pace of India’s economic growth.
“We can expect another rate hike of 25 to 50 basis points in the coming months. Thus, despite India remaining the world’s fastest growing economy, all eyes are placed on global recession fears and rising borrowing costs,” Nath added.
Even as recovery in domestic economic activity is yet to be broad-based, global drags in the form of still-elevated prices, shrinking corporate profitability, demand-curbing monetary policies and diminishing global growth prospects weigh on growth outlook.