01-Sep-2023
2 mins read
For the fiscal quarter spanning April to June, India’s GDP saw an impressive uptick of 7.8%. Released by the Ministry of Statistics and Programme Implementation as August came to a close, this figure marks a substantial leap from the 6.1% rate recorded in the previous quarter.
A Spectrum of Economic Forecasts
Interestingly, the Reserve Bank of India’s projection for the quarter’s growth was spot-on at 7.8%. This is slightly above a Reuters poll that estimated growth to be 7.7% and a bit below the State Bank of India economists, who had their sights set on an 8.3% bump in GDP.
Sectors and Tax Collections Demonstrate Resilience Amid Concerns
While experts remain cautious due to factors like inflation and unpredictable weather conditions, India’s key sectors, such as manufacturing, services, and exports, have shown promising growth. Tax collections have also been notably strong.
Finance Minister Expects Sustained Economic Health
Nirmala Sitharman, India’s Finance Minister, recently indicated that she expects the upward trajectory to continue at least until the end of this year. She foresees a steady rise in demand.
First-Quarter Fiscal Deficit Reaches 33.9% of Annual Target
In the initial four months of the 2023-24 fiscal year, the central government’s fiscal deficit climbed to 33.9% of the year’s total anticipated deficit. The absolute fiscal gap reached Rs 6.06 lakh crore by the end of July.
Infrastructure Sectors Show Marked Improvement
In July 2023, the growth in key infrastructure sectors rose to 8%, up from 4.8% during the same period last year, spurred by expansion in crude oil, coal, and natural gas production. However, the rate of growth was marginally lower compared to the previous month.