The Indian economy is seen growing at a rate of 7% in the current financial year, according to the first advanced estimates of the National Statistical Office (NSO).
The expected growth rate is lower than the 8.7% estimate pegged for the previous fiscal FY22.
Last month, the Reserve Bank of India (RBI) lowered its forecast for FY23 GDP growth rate to 6.8% from its previous projection of 7% amid global headwinds including the geopolitical tensions and the slowdown in global demand. Several international agencies and investment banks have lowered their estimate for India’s GDP growth rate in the ongoing financial year.
“Real GDP or GDP at constant (2011-12) prices in the year 2022-23 is estimated at ₹157.60 lakh crore, as against the provisional estimate of GDP for the year 2021-22 of ₹147.36 lakh crore, released on 31 May, 2022. The growth in real GDP during 2022-23 is estimated at 7.0% as compared to 8.7% in 2021-22,” said a statement from the ministry of finance.
Further, the nominal GDP growth in the ongoing fiscal is estimated at 15.4% as compared to 19.5% in 2021-22.
The data released on Friday showed that the private final consumption expenditure may growth 7.68% in FY23 over the previous fiscal. The private final consumption expenditure (PFCE) is the expenditure incurred by the resident households and non-profit institutions serving households on final consumption of goods and services, whether made within or outside the economic territory, thereby showing the demand scenario in the country.
The share of private final consumption expenditure in the GDP is expected to rise to 57.2% in FY23 from the 56.9% in FY22, while that of government final consumption expenditure is seen falling to 10.3% to 10.7%.
Similarly, the share of imports in the GDP is see growing to 29.7% this fiscal from 26.3% in the last fiscal and that exports is seen at 22.7% up against 21.5% in FY22.
According to the first advance estimates, agriculture is likely to grow 3.5% in the current fiscal, higher than the 3% growth in FY22, while the growth rate in manufacturing is is likely to decline to 1.6% from 9.9 in FY22.
Mining sector too is expected to see a dip in the growth rate from 11.5% in FY22 to 2.4% in the ongoing fiscal.
