India’s GDP Growth Slows To 6.3% In July-September Quarter

Last year, the GDP growth rate was 8.4 per cent in the July-September quarter

Updated on: 30 November 2022 5:37 pm

India's GDP growth in second quarter of FY23

India's economic growth slowed down to 6.3 per cent in the July-September quarter of this fiscal, dragged down mainly by the poor performance of manufacturing and mining sectors, official data showed on Wednesday.

Last year, the GDP growth rate was 8.4 per cent in the July-September quarter, according to data released by the National Statistical Office (NSO). The gross domestic product (GDP) expanded by 13.5 per cent in the April-June quarter this fiscal.

"Real GDP or GDP at Constant (2011-12) Prices in Q2 2022-23 is estimated at Rs 38.17 lakh crore, as against Rs 35.89 lakh crore in Q2 2021-22, showing a growth of 6.3 per cent as compared to 8.4 per cent in Q2 2021-22," the NSO statement said.

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The Reserve Bank of India, in its last monetary policy committee meeting, had pegged the economy to grow at 6.3 per cent.

According to the rating agency ICRA, the GDP is expected to grow at 6.5 per cent, while the State Bank of India in its report pegged the growth rate at 5.8 per cent.

Earlier this month, in an article published in the Reserve Bank of India (RBI) bulletin, the GDP growth was pegged at 6.1 to 6.3 per cent in the second quarter of this fiscal year.

As per the data, Gross Value Added (GVA) grew by 5.6 per cent to Rs 35.05 lakh crore in July-September this year. The GVA growth in the farm sector is 4.6 per cent in the second quarter compared to 3.2 per cent a year ago. However, the GVA in the manufacturing sector contracted 4.3 per cent during the quarter from 5.6 per cent growth during the year-ago period.

GVA in mining also declined by 2.8 per cent in the quarter compared to 14.5 per cent growth. The GVA growth in the construction sector also decelerated to 6.6 per cent in the quarter from 8.1 per cent.

The electricity, gas, water supply and other utility services segment grew by 5.6 per cent in the quarter compared to 8.5 per cent a year ago. GVA growth in the services sector -- trade, hotel, transport, communication and services related to broadcasting -- was 14.7 per cent during the second quarter against 9.6 per cent.

(With inputs from PTI)