“Real GDP or GDP at Constant (2011-12) Prices in the year 2022-23 is estimated to attain a level of Rs 160.06 lakh crore, as against the First Revised Estimates of GDP for the year 2021-22 of Rs 149.26 lakh crore,” said a Government statement.
The provisional estimates of the GDP growth for FY 2023 had anticipated it below 7 per cent. As it happened, the growth in the fourth quarter surprised on the upside and this means that India’s GDP growth rate for FY23 is pegged at 7.2 per cent, marginally higher.
Not a one-off year: Experts have pointed out that India has done better than almost all major economies. And this is not a one-off year of good growth as they have painted a similar picture for the Indian economy for the current financial year 2023-24.
Despite strong global headwinds and tighter domestic monetary policy tightening, various international agencies have forecast India to be one of the fastest-growing economies in 2023-24.
Investment push: “This time, the growth is led by investment. Not only the Government infra investments, but also the private capex has taken off,” said Nilesh Shah, MD of Kotak Mahindra Asset Management.
Clearly, massive improvement in India’s highway network expansion, and port handling capacity, airports and power generation in the past decade have been paying dividends.
Ashish Chauhan, CEO of the National Stock Exchange, supported this view: “These infra investments will sustain India’s growth and will keep India among the fastest-growing major economies in the world,” he said.
India has done well in the first two months of 2023- 24. As economic activities and consumption rise, the country is expected to do well. Industry body CII sees India’s 2023-24 growth at 6.5-6.7 per cent – supported by strong domestic drivers and robust momentum in capex.