India’s GDP estimated to grow at 7% in FY23, says government

NEW DELHI: The first advance estimate of gross domestic product (GDP) released on Friday shows that the Indian economy is projected to grow at 7% in the financial year 2022-23 (FY23).
Releasing the first advance estimates of National Income for 2022-23, the National Statistical Office (NSO) stated, “Real GDP or GDP at Constant (2011-12) Prices in the year 2022-23 is estimated at Rs 157.60 lakh crore, as against the Provisional Estimate of GDP for the year 2021-22 of Rs 147.36 lakh crore, released on 31st May, 2022.”
The estimate is lower than FY22 GDP growth of 8.7%. This can be mainly attributed to poor performance of the manufacturing sector, the NSO said.
Interestingly, the preliminary projection is much lower than the government’s earlier forecast of 8%-8.5%, but above the Reserve Bank of India’s projection of 6.8%.
The advanced GDP estimates are an important figure for the government as they use it as a base to work out its economic growth and fiscal projections for the next budget due on February 1.

Sectoral estimates
As per the first advance estimates of national income, manufacturing sector output is estimated to decelerate to 1.6% in the current fiscal from 9.9% in 2021-22.
Similarly, mining sector growth is estimated at 2.4% in the current fiscal as against 11.5% in 2021-22.
The agriculture sector is projected to see a growth of 3.5% in FY2022-23, higher than the 3% expansion recorded in the previous financial year.
Trade, hotel, transport, communication and services related to broadcasting segment is estimated to grow at 13.7% from 11.1% in 2021-22.
Financial, real estate and professional services segment is projected to grow at 6.4 per cent in the current fiscal, up from 4.2% in 202-22.
However, construction sector growth is expected to decelerate to 9.1% from 11.5% a year ago.
Similarly, public administration, defence and other services growth is estimated to drop to 7.9% this fiscal from 12.6% in FY22.