After hitting double digital growth in the previous quarter, India's economy grew at 6.3% in the July-September quarter of 2022-23 as compared to 8.4% in the same period last year, mainly due to the lack of favourable base effect, the government data released today shows.

India's economy had grown by a whopping 13.5% in the previous quarter of the fiscal year. The slowing of economic growth this time can be attributed to several macroeconomic factors including low base, drag from global spillovers, elevated inflation and slackening of external demand.

The data released by the Ministry of Statistics and Programme Implementation today shows the real GDP grew at ₹38.17 lakh crore in Q2 FY23 against ₹35.89 lakh crore in Q2 FY22, up 6.3% vs 8.4% in the year-ago period. The nominal GDP growth (current prices) in the said quarter was ₹65.31 lakh crore against ₹56.20 lakh crore in Q2 FY22, a growth of 16.2% vs 19% in the year-ago period.

The ministry says India's GDP at constant prices in the April-September or H1 FY23 period stood at ₹75.02 lakh crore, as compared to ₹68.36 lakh crore in the same period last year. This is a growth of 9.7% in H1FY23 against 13.7% during the same period last year. H1 FY23 GDP at current prices was ₹130.26 lakh crore against ₹107.47 lakh crore in the year-ago period, a growth of 21.2% against 25% during the same period last year.

The current GDP numbers are largely in line with estimates by financial institutions, economists and other agencies.

“We are observing normalisation in growth rates compared to the previous quarter due to waning Covid effect. The private consumption growth remains robust. The growth is expected to remain resilient despite global headwinds on the back of strong domestic demand,” says Ritika Chhabra, economist, Prabhudas Lilladher.

Q2 GVA

India’s GDP growth slows to 6.3% in July-Sept period