GDP Growth Report: Central government today in the third quarter of the financial year 2023 Gross Domestic Product (GDP) or economic growth rate data will be released. Today, on February 28, the GDP figures for the October-December 2022 quarter of the financial year 2023 will be revealed, so that it will be known whether the economic condition of the country is good or not. It will be known about the further focus of the central government that what kind of plan the government is thinking of working on. So that GDP growth remains good.
Explain that after a double-digit expansion in the first quarter of the current financial year, the growth rate of gross domestic product (GDP) came down to 6.3 percent in the last quarter. The third quarter GDP figures will play an important role in deciding market sentiment on Tuesday. GDP growth in the April-June quarter last year was 13.5 percent. For FY23, experts are talking of a revival in the growth momentum. As economic activity remained markedly uneven in the quarter, however, among key sectors, agriculture is likely to see a reasonable recovery.
According to sources, India’s economic growth in the December quarter slowed down to 4.7% from 6.3% in the previous three months. A DBS Bank economist says that the growth data to be released on February 28, 2023, could point to “further strengthening of the growth momentum”. Our mix of high frequency data points to a sequential improvement in the quarter, even as year-over-year growth is set to moderate on base effects.
ICRA made this estimate
ICRA estimates year-on-year (YoY) growth of GDP in Q3 of FY2023 at 5.1%, a base effect-based moderation from 6.3% recorded in Q2 of FY2023. However, GDP growth at pre-Covid levels is expected to improve further to 11.6% in Q3 FY2023 as compared to 7.6% seen in the previous quarter, boosted by continued improvement in the services sector.
economic activity has been uneven
Aditi Nair, Chief Economist, Head-Research & Outreach, ICRA Ltd, says economic activity in Q3 FY2023 remained markedly uneven amid strong demand for contact-intensive services and upbeat sentiment during the festive season. Trends in government spending were uneven, with a healthy revenue expenditure by the Government of India (GoI) amid a base effect. Similarly, while services sector exports registered a sharp growth of 25%, non-oil goods exports declined by 8.2% in the same quarter.
Simultaneously, advance estimates of kharif production also indicate a mixed trend in crop production, with year-on-year growth in sugarcane, cotton, coarse cereals and oilseeds, and decline in rice and pulses. We expect GDP growth to pick up to 5.1% in Q3 of FY2023 amid continued input price pressures for some sectors.