According to the first official estimate made by the Statistics Ministry on Friday, India’s gross domestic product (GDP) growth will slip to 7% in the current fiscal year ending in March 2023 as a result of weak demand.
India’s GDP grew by 8.7% between 2021 and 2022. If the National Statistical Office’s (NSO) prediction comes true, India’s GDP growth will be less than the 7.6% expansion Saudi Arabia is predicted to have. The projections are higher than the Reserve Bank’s 6.8% projection even though they are substantially below than the government’s prior forecast of 8–8.5% growth.
The NSO estimated that the manufacturing sector’s output would slow to 1.6% from a 9.9% increase in FY22. Similar estimates place mining industry growth at 2.4% in the current fiscal year against 11.5% in 2021–22.
According to the NSO, “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.”
According to the report, real GDP growth is expected to slow to 7% in 2022–2023 from 8.7% in 2021–2022 period.
Nominal GDP or GDP at Current Prices is projected to be ₹273.08 lakh crore in 2022–2023 as opposed to the Provisional Estimate of GDP for the year 2021–2022 of ₹236.65 lakh crore, published on May 31, 2022. According to the NSO’s announcement, nominal GDP growth is projected to be 15.4% in 2022–2023 compared to 19.5% in 2021–2022
The RBI had reduced the country’s GDP growth prediction for the current fiscal year from 7% to 6.8% in December due to the persistence of geopolitical concerns and tightening of global financial conditions.
The NSO also provided growth predictions for many industries. In comparison to the 3 percent growth seen in the previous fiscal year, the agriculture industry is expected to rise by 3.5% in FY2022-23. According to estimates, the trade, hotel, transportation, communication, and services connected to broadcasting segment will increase by 13.7% from 11.14% in 2021–2022. Though growth in the construction sector is anticipated to slow from 11.5 to 9.1% from a year ago.