India's GDP expands by 13.5% in first quarter of FY23, fastest in a year

New Delhi: India's economy grew by 13.5 per cent in the April-June period this fiscal -- the fastest in the last four quarters -- on account of better performance by the agriculture and services sectors, official data showed on Wednesday.

India remained the fastest growing major economy as China registered economic growth of 0.4 per cent in the April-June 2022 quarter.

The Indian economy grew by 20.1 per cent in April-June 2021-22, as per the data released by the National Statistical Office (NSO).

The gross domestic product (GDP) expanded by 8.4 per cent in July-September 2021, 5.4 per cent in October-December 2021 and 4.1 per cent in January-March 2022.

The first quarter growth at 13.5 per cent is less than the RBI's projection of 16.2 per cent released earlier this month.

"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 per cent as compared to 20.1 per cent in Q1 2021-22," the NSO statement said.

The real GDP in absolute terms stood at Rs 27.03 lakh crore in the April-June quarter in 2020. It had contracted by 23.8 per cent in the first quarter of 2020-21 on account of lockdown restrictions to curb the spread of coronavirus.

As per the data, Gross Value Added (GVA) grew by 12.7 per cent to Rs 34.41 lakh crore in April-June this year.

The GVA growth in the farm sector is 4.5 per cent in the first quarter compared to 2.2 per cent a year ago.

However, the GVA growth in the manufacturing sector decelerated sharply to 4.8 per cent during the quarter from 49 per cent during the year-ago period.

GVA growth in mining is 6.5 per cent in the quarter compared to 18 per cent. The GVA in the construction sector also decelerated to 16.8 per cent in the quarter from 71.3 per cent.

The electricity, gas, water supply and other utility services segment grew by 14.7 per cent in the quarter compared to 13.8 per cent a year ago.

GVA growth in the services sector -- trade, hotel, transport, communication and services related to broadcasting -- was 25.7 per cent during the first quarter against 34.3 per cent.

Financial, real estate and professional services grew by 9.2 per cent in the first quarter over 2.3 per cent earlier.

Public administration, defence and other services posted 26.3 per cent growth against 6.2 per cent in the first quarter of last fiscal.

The NSO stated that the Nominal GDP or GDP at Current Prices in Q1 2022-23 is estimated at Rs 64.95 lakh crore against Rs 51.27 lakh crore in Q1 2021-22, showing a growth of 26.7 per cent compared to 32.4 per cent a year ago.