India GDP Data Q4: The National Statistical Office (NSO) released the gross domestic product (GDP) growth rate for the fourth quarter of fiscal year 2022-23, along with the growth rate clocked during the entire FY23.
The country’s gross domestic product grew by 6.1 percent in the fourth quarter of fiscal year 2022-23, as per the official data. For the entire FY23, the growth rate came in at 7.2 percent.
Meanwhile. the fiscal deficit for 2022-23 worked out to be 6.4 per cent of the gross domestic product (GDP), as it was projected by the finance ministry in the revised budget estimates, according to government data released on Wednesday.
Unveiling the revenue-expenditure data of the Union government for 2022-23, the Controller General of Accounts (CGA) said that the fiscal deficit in absolute term was Rs 17,33,131 crore (provisional).
The government borrows from the market to finance its fiscal deficit. CGA further said the revenue deficit worked out to be 3.9 per cent of GDP, while the effective revenue deficit was 2.8 per cent of GDP.
In the Union Budget presented by Finance Minister Nirmala Sitharaman in the Lok Sabha on February 1, the fiscal deficit target for 2023-24 was pegged at 5.9 per cent of the GDP.
In February, India’s GDP data for the third quarter of the current fiscal 2022-23 (Q3 FY23) was released stating Indian economy grew by 4.4 % in October-December 2022 compared to 11.2 % year ago.
Also Read: India Q4 GDP LIVE: Jan-Mar 2023 GDP Data Out
India’s economic growth in 2021-22 revised upwards to 9.1 % from 8.7 % earlier. The economy to grow at 7 % in 2022-23, government data had said in February.
The central government’s fiscal deficit touched 67.8 per cent of the full-year target at the end of January due to higher expenses and lower revenue realisations, the February data release had said.
In the first advance estimates of the national income for FY23 in early January, the NSO estimated the Indian economy to grow at 7 per cent in 2022-23, as against 8.7 per cent in the previous fiscal, mainly due to poor performance of the manufacturing sector.
In the previous quarter ended September 30, 2022 (Q2 FY23), India’s GDP had grown 6.3 per cent.
Meanwhile, according to the RBI’s annual report 2022-23 released on Tuesday, India’s GDP growth for 2023-24 was projected at 6.5 per cent amid softer global commodity and food prices, and good rabi crop prospects, among others. It said that domestic economic activity does face challenges from an uninspiring global outlook going forward, but resilient domestic macroeconomic and financial conditions expected dividends.
The RBI also said that India’s growth momentum is likely to continue in 2023-24 even as it made a case for pushing structural reforms to deal with the geopolitical developments and also to achieve sustained growth in the medium-term.
“Amidst strong global headwinds, the Indian economy is expected to have recorded a growth of 7.0 per cent in real GDP in 2022-23,” it said.
The report flagged slowing global growth, protracted geopolitical tensions and a possible upsurge in financial market volatility as possible downside risks to growth.
The report noted that volatility has ebbed in global financial markets and risks to financial stability from the failure of banks in some advanced economies (AEs) in March 2023 have eased. Resolute policy actions have stemmed the tide of confidence runs for now.
A sustained recovery in discretionary spending, particularly in contact intensive services, restoration of consumer confidence, high festival season spending after two consecutive years of COVID-19 induced isolation and the government’s thrust on capex provided impetus to the growth momentum.
In the second half of the year, however, the pace of year-on-year growth moderated because of unfavourable base effects, weakening private consumption demand caused by high inflation, slowdown in export growth and sustained input cost pressures, it said.
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