The latest data released by the National Statistical Office (NSO) shows that India has registered an economic growth of 7.8 percent in the April-June quarter of 2023-24. Earlier, India’s growth rate was 6.1% in the March quarter, while GDP was 7.2% in the previous year. Going by the numbers, the first quarter of the current financial year has been spectacular for the economy.
A major contributor to the strong GDP figure is capital expenditure by the central and state governments. If this or better GPD growth remains, then before 2030 India can become a 10 trillion dollar economy. With the current growth rate, India is the fastest growing country among major economies. China is second after India, whose GDP growth rate stood at 6.3 percent in the April-June quarter.
RBI and IMF estimates
RBI had estimated India’s GDP to be 8 percent during the first quarter, but the growth rate was 7.8 percent. According to RBI, India’s growth rate for the current financial year is going to be 6.5 percent. IMF estimates that the growth rate of India’s economy will be 6.1 percent this year. Although there are ups and downs in it.
Decline growth rate of manufacturing sector
Manufacturing sector growth slowed to 4.7 per cent in the first quarter of the current fiscal, from 6.1 per cent in the year-ago period. There has been a decline in core sector growth in the month of July. The agriculture sector registered a growth of 3.5 per cent, up from 2.4 per cent in the April-June quarter of 2022-23.
What is the fiscal deficit situation?
According to the data released by the government, in the first quarter of the current financial year, India’s fiscal deficit reached Rs 6.06 lakh crore, which is 33.9 percent of the fiscal deficit of the current financial year. The strengthening of the dollar and rising crude oil prices had an impact on the domestic currency. Due to which the rupee depreciated by 16 paise against the US dollar on Thursday, closing at 82.79 (provisional) per dollar.
Also read:
PhonePe launches its trading app Share.Market under PhonePe Wealth Broking subsidiary
2024 Social Security COLA Projection Shows Increase Despite Decrease in Inflation