India's Gross Domestic Product (GDP) grew by 7.8 percent in the first quarter of FY23-24, government data has revealed.
The specifics: Real GDP in the April-June quarter is estimated to attain a level of ₹40.37 lakh crore as against ₹ 37.44 lakh crore in Q1FY22-23, the National Statistical Office (NSO) said in a press release on Thursday, 31 August.
For context, the GDP growth rate registered in the first quarter of the previous financial year was 13.1 percent.
India's GDP growth rate was at 6.1 percent in the last quarter (Q4FY22-23).
India’s nominal GDP in this quarter showed a growth rate of 8 percent as compared to 27.7 percent in Q1 FY22-23.
On the money? While the RBI had projected a GDP growth of 7.8 percent (in February and April 2023) and 8 percent (in June and August 2023), SBI economists had reportedly pegged it at 8.3 percent for the June quarter.
Why it matters: These estimates reflect the performance of various sectors and are compiled "using the benchmark indicator method, i.e., quarterly estimates available for the previous year referred to as the benchmark year are extrapolated using the relevant indicators reflecting the performance of sectors," read an official press release.
Headwinds: Weakening momentum in government capex, El Nino effects, lesser mining output, and sluggish exports could lead to the Indian economy's growth rate moderating out in the next few quarters, Indian Express reported.
The Economic Survey 2022-23 that was released in January this year, had projected India's total GDP growth to be 6-6.8 percent for FY23-24, making the country one of the fastest growing major economies.
Next, the NSO is expected to release quarterly GDP data for Q2FY23-24 on 30 November 2023.
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