The National Statistical Office in its first advance estimate of economic growth for current financial year 2022-23 on Friday pegged that Indian economy will grow at 7 per cent compared with 8.7 per cent in the previous financial year. The numbers assume significance because the data will be used by Finance Ministry to prepare budget for upcoming financial year 2023-24 which will be presented by Finance Minister Nirmala Sitharaman on February 1.
The growth in nominal GDP during 2022-23 is estimated at 15.4 per cent as compared to 19.5 per cent in 2021-22, NSO said. India’s net national income is set to grow by 6.6 per cent this fiscal compared to 8.5 per cent in the previous fiscal.
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Releasing the first advance estimates of National Income for 2022-23, the NSO stated, "Real GDP or GDP at Constant (2011-12) Prices in the year 2022-23 is estimated at Rs 157.60 lakh crore, as against the Provisional Estimate of GDP for the year 2021-22 of Rs 147.36 lakh crore, released on 31st May, 2022."
The agriculture sector is projected to see a growth of 3.5 per cent in FY2022-23, higher than the 3 per cent expansion recorded in the previous financial year.
Trade, Hotels, Transport, Communications and Services related to Broadcasting showed maximum growth of 13.7 per cent among 8 core industries compiled by the NSO. Whereas, the manufacturing sector recorded slowest growth of 1.6 per cent falling sharply from 9.9 per cent in the previous financial year.
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Mining and quarrying industry collapsed from 11.5 per cent in the previous fiscal to 2.4 per cent this fiscal.
The NSO estimates are a tad higher than the 6.8 per cent GDP growth projection of the Reserve Bank of India (RBI).
Last month, the RBI had lowered the country's gross domestic product (GDP) forecast to 6.8 per cent for the current fiscal from 7 per cent earlier, on account of continued geopolitical tensions and tightening of global financial conditions.
In April 2022, the central bank had cut the GDP growth estimate from 7.8 per cent to 7.2 per cent, and further lowered it to 7 per cent in September, last year.
The GDP growth in the second quarter of the fiscal slowed to 6.3 per cent from 13.5 per cent in the preceding three months.
The International Monetary Fund (IMF) too had reduced India’s growth prediction for FY23 to 6.8 per cent from 7.4 per cent projected in July 2022.
The World Bank, however has raised India's GDP forecast for the current fiscal to 6.9 per cent from its earlier estimate of 6.5 per cent.
The Asian Development Bank has kept India growth forecast unchanged at 7 per cent for 2022-23.
(With PTI inputs)
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