India's GDP to grow at 7 pc in FY23: First Advance Estimates of National Income

India's GDP had grown at 8.7 percent in the year ending 31 March, 2022.

The Ministry of Statistics & Programme Implementation said in a statement that India’s nominal GDP growth for FY23 is estimated at 15.4 percent as against 19.5 percent in FY22.

Meanwhile, growth in gross value added (GVA) at basic prices is pegged at 6.7 percent this fiscal, down from 8.1 percent in 2021-22.

Gross value added (GVA) is an economic productivity metric that measures the contribution of a corporate subsidiary, company, or municipality to an economy, producer, sector, or region.

GVA is important because it is used to adjust GDP, which is a key indicator of the state of a nation's total economy.

"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 31st May, 2022. The growth in real GDP during 2022-23 is estimated at 7.0 percent as compared to 8.7 percent in 2021-22," the ministry said.

The manufacturing sector’s output is estimated to decelerate to 1.6 percent as against a growth of 9.9 percent in FY22 while construction growth may moderate to 9 percent in FY23 from 11.5 percent in FY22.

Similarly, mining sector growth is estimated at 2.4 percent in the current fiscal as against 11.5 percent in 2021-22.

In December 2022, the Reserve Bank of India (RBI) had reduced the country's GDP growth projection to 6.8 percent for the current financial year from 7 percent, citing ongoing geopolitical tensions and uncertain global financial conditions.

The RBI had projected the real GDP growth for 2022-23 at 6.8 percent, with the third quarter at 4.4 percent and the fourth at 4.2 percent.

The GDP growth in the second quarter of the fiscal had slowed to 6.3 percent from 13.5 percent in the preceding three months.

The Second Advance Estimates of National Income for the year 2022-23 and quarterly GDP estimates for the quarter October-December, 2022 (Q3 2022-23), along with the First Revised, Second Revised and Third Revised Estimates of National Accounts for the years 2021-22, 2020-21 and 2019-20 respectively will be released on 28.02.2023, the ministry said.