India’s GDP growth slowed to 4.4% in the October to December 2022 quarter, from 6.3% in the second quarter, as per the National Statistical Office.
The government data also estimated 2022-23 GDP growth at 7% compared to an upwardly revised 9.1% growth in 2021-22.
GDP growth was earlier estimated at 8.7% in 2021-22. The Gross Value Added (GVA) in the economy grew 4.6% in the third quarter (Q3) of 2022-23, down from 5.5% in Q2, with manufacturing continuing to shrink for the second quarter, albeit at a slower pace of 1.1% compared to 3.6% in Q2.
Mining and quarrying GVA recovered from a 0.4% contraction in Q2 to grow 3.7% in Q3, while Agriculture, Forestry and Fishing GVA accelerated to 3.7% the fastest pace of growth this year from 2.4%-2.5% in Q1 and Q2.
Construction GVA growth also sped to 8.4% in Q3 from 5.8% in Q2, as did Electricity, Gas, Water Supply and other Utility Services (up 8.2% in Q3 from 6% in Q2).
However, three other major industry heads recorded lower GVA growth in Q3 from Q2, contributing to the drag on overall growth, including the contact-intensive Trade, Hotels, Transport, Communication and Services related to Broadcasting sectors, which grew at 9.7% compared to 15.6% in Q2.
Manufacturing and Mining GVA contractions for Q2 have been upgraded by the NSO from its earlier estimates of a 4.3% and 2.8% shrinkage in the two sectors, respectively. Agriculture GVA growth, on the other hand, has been downgraded sharply for Q1 as well as Q2. Earlier estimates of 4.5% and 4.6% GVA growth in these quarters, have been slashed to 2.5% (Q1) and 2.4% (Q2), respectively.
Overall GVA growth in Q1 has been revised from 12.7% reckoned earlier to 12.1%, while the Q2 GVA uptick has been pared marginally from 5.6% estimated earlier, to 5.5%.
GDP growth for the first quarter of 2022-23 has been revised down to 13.2% from 13.5% estimated earlier, but Q2 GDP growth estimates were left unchanged.