The latest estimate of real GDP turned out to be higher than the second advance estimate released in February 2023, says government.
Amidst these global spillovers, India’s real gross domestic product (GDP) expanded by 7.2 per cent in FY23, the highest among major economies, according to the annual economic review 2022-23 report of the Finance Ministry.
The report stated that India’s economy has sustained its growth momentum in FY23 on account of its strong macroeconomic fundamentals and the prompt policy action by the Government and the RBI.
Interestingly, the ministry in the report stated that the latest estimate of real GDP turned out to be higher than the second advance estimate released in February 2023.
“The higher annual growth was driven mainly by better-than-expected growth in the fourth quarter of the fiscal year,” according to the report.
The performance of India’s real GDP in Q4 of FY23 stood out compared to other countries.
The year-on-year (YoY) growth in real GDP in Q4 of FY23 is estimated at 6.1 per cent, compared to 4 per cent growth in Q4 of FY22 and 4.5 per cent growth in Q3 of FY23.
It stated that on a sequential basis, the growth in Q4 of FY23 at 8.4 per cent is higher compared to 3.7 per cent in the previous quarter, reflecting the sustenance of growth momentum in Q4.
The performance in Q4FY23 was broad-based and addressed all concerns about the recovery of consumption and investment demand to the pre-pandemic growth trajectory.
Enabled by the release of pent-up demand, real private final consumption expenditure (PFCE) has surpassed the pre-pandemic trend trajectory.
“Similarly, a large step up in public sector capex over the last three years and a favourable credit situation in the country have contributed to real Gross Fixed Capital Formation (GFCF), also surpassing the pre-pandemic trend trajectory,” it added.