India’s GDP grows by 13.5 % in Q1 FY 2022-23

Edited by: Vikas Mavi

1st September, 2022 (New Delhi): India’s GDP increased by 13.5% in the April-June quarter (Q1) of the current fiscal year 2022-23, according to the latest estimates provided by the National Statistical Office (NSO) on Wednesday. GDP increased in tandem with the easing of the impact of the Russia-Ukraine war, and a rebound in service sector activity is likely to have aided development.

Service and Core sectors’ growth

The recovery in the services sector was led by trade, hotels, transportation, communication, and broadcasting-related services, which increased by 34.3%. During the quarter, the financial services and real estate segments expanded by 9.2%. While the core sectors like Steel, Coal, & Crude, etc slowed by 4.5%.

But what about the fiscal deficit?

Fiscal deficit is a reflection of the government’s market borrowings. According to secondary government figures, the Centre’s budget deficit reached 20.5 percent of the targeted value at the end of July 2022–23, compared to 21.3 percent of the previous year, indicating an improvement in public finances. During the April-July period of this fiscal year, the fiscal deficit-the total difference between expenditure and revenue-was Rs 3,40,831 crore. As per the officials of the finance ministry, India’s GDP is expected to grow at a rate of 7–7.5% in FY 22–23.