The Indian economy grew by 13.5% in the first quarter of the financial year 22-23

Tags: Economy/Finance

The Indian economy grew by 13.5% in the April to June (2022-23) as compared to the same period last year. However it was below the Reserve Bank of India 16.2 % forecast for the first quarter.

The data regarding the performance of the Indian economy in the first quarter of the fiscal year 20222-23 was released by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation on 31^st August 2022.

India still remains the fastest growing major economy in the world. The Chinese economy grew by 0.4% during April -June 2022.

The growth rate of the Indian economy in 2021-22 was 8.7%.

GDP growth rate at constant price (2011-12 base year) 

GVA=GDP + subsidies on products – taxes on products.

Nominal GDP

The Nominal GDP at Current Prices in Q1 2022-23 is estimated at Rs 64.95 lakh crore against Rs 51.27 lakh crore in Q1 2021-22, showing a growth of 26.7 per cent compared to 32.4 per cent a year ago.

 While calculating the nominal GDP the market price of goods and services are included. It makes no adjustment for inflation 

GDP at Constant Price or Real GDP

The Real Gross Domestic Product (GDP) at Constant Price (2011-12) in Q1 2022-23 is estimated at Rs 36.85 lakh crore, as against Rs 32.46 lakh crore in Q1 2021-22, showing a growth of 13.5.

While calculating the GDP at constant price the price rise in the goods and services due to inflation is not counted. Prices are fixed to a base year (2011-12). It measures the actual increase in the production of goods and services. 

GDP at constant price is the best indicator to measure the growth of an economy.

Expected GDP growth rate in fiscal year 2022-23

The Reserve Bank of India expects the Indian Economy to grow by 7.2% in 2022-23.

The Union Finance Secretary T V Somanathan said that the Finance Ministry expects the growth rate of the economy to be 7-7.5% in the current fiscal year (2022-23).