The Central government released its first advance estimates of GDP to serve as essential inputs to the Budget exercise. According to the first advance estimates by the National statistical Office (NSO), India’s economy is expected to grow 7.0 per cent in the current financial year.
In 2022, the Reserve Bank of India (RBI) has lowered the country’s GDP growth forecast to 6.8 per cent for the current fiscal from 7 per cent earlier, on account of continued geopolitical tensions and tightening of global financial conditions.
As per the first advance estimates, growth in Nominal GDP in the current financial year is estimated at 15.4 per cent as compared to 19.5 per cent in 2021-2022.
The share of private consumption in GDP is expected to rise to 57.2 per cent in FY23 from 56.9 per cent in FY22 and 57.3 per cent in FY21. Per capita gross national income in real terms is estimated to be Rs 1,11,807 crore in FY23, higher than Rs 1,05,955 crore in FY22 and Rs 98,629 crore in FY21.
Agriculture is expected to grow 3.5 per cent in FY23 after growing 3 per cent in FY22. Mining & quarrying is likely to see a reduction in growth at 2.4 per cent in FY23 after growing at around 11.5 per cent in FY22.
Manufacturing growth is pegged to drop from 9.9 per cent in FY22 to 1.6 per cent in FY23 while construction growth may moderate to 9 per cent in FY23 from 11.5 per cent in FY22.
Trade, hotels, transport, communications & services related to broadcasting are pegged to grow at 13.7 per cent after growing at just over 11 per cent in FY22. Financial, real estate & professional services are seen growing at 6.4 per cent in FY23, up from 4.2 per cent in FY22.
The first revised estimates for the financial year 2021-2022 will be released on 28th February, along with second advance estimates and quarterly GDP.
Also read: RBI to issue green bonds worth Rs 16,000 cr in two tranches in Jan, Feb
Also read: India’s GDP likely to grow 7% in FY23: First advance estimates