India's GDP growth accelerates to one-year high at 7.8% in June quarter; Q1 GDP print in line with Street estimates

India's gross domestic product (GDP) grew by 7.8 per cent in the April-June quarter of current fiscal (2023-2024), compared to a growth of 6.1 per cent in the previous January-March quarter of fiscal 2022-23, according to official data shared by the National Statistical Office.

On a year-on-year basis, the GDP print recorded in the correpsonding period last year was 13.1 per cent. The Q1FY24 economic growth is the highest in four quarters, largely driven by a robust services sector, and strong capital expenditure.

The GDP print came in line with Street estimates that projected a growth of 7.7 per cent during the fourth quarter. However, some economists and rating agencies expect India's Q1 GDP print to beat the 8 per cent forecast of the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC).

RBI Governor Shaktikanta Das-led rate-setting panel had projected India's real GDP growth for 2023-24 at 6.5 per cent with Q1 growth rate at 8 per cent. 

For fiscal 2022-23, India's economy's growth rate came in at 7.2 per cent, higher than the central bank's estimate of 7 per cent. However, the pace of growth was slower as compared to 9.1 per cent recorded in FY22.

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