India Q1 GDP: India's GDP was 7.8 percent in the first quarter, government released figures

Pankaj Prasad
India Q1 GDP growth rate
India Q1 GDP growth rate

The Reserve Bank of India had estimated the GDP growth rate to be 7.8 percent in the April-June quarter.

The country's GDP stood at 7.8 percent in the April-June quarter. The data related to the country's GDP was released on Thursday (August 31) by the Ministry of Statistics and Program Implementation. The data shared showed that India's gross domestic product (GDP) grew by 7.8 percent for the first quarter of the current financial year i.e. April-June quarter. In the fourth quarter of the previous financial year, the GDP growth rate was 6.1 percent.

RBI had estimated a growth rate at 7.8%

Explain that the Reserve Bank of India had estimated the GDP growth rate to be 7.8 percent in the April-June quarter. A poll of economists had estimated the GDP growth rate to be 7.7 percent. Meanwhile, economists at State Bank of India had estimated the economic growth rate to be 8.3 percent.

Growth rate of eight core sectors at 8%, up from 8.3% last month

The growth rate of eight key infrastructure sectors increased to eight percent in July 2023 from 4.8 percent in the same month last year, driven by increase in production of coal, crude oil and natural gas. Data shows that the production of steel, cement and electricity also increased in the month of July. According to data from the Ministry of Commerce and Industry, however, the growth rate of the core sector in July was lower than the previous month's 8.3 percent. The production growth of eight sectors also declined to 6.4 percent in April-July 2023-24 from 11.5 percent in the same period a year ago.

Centre's fiscal deficit reaches 33.9% of full-year target

The Centre's fiscal deficit reached 33.9% of the full-year target in the first four months of 2023-24. According to the data released by the Controller General of Accounts (CGA), the fiscal deficit till the end of July was Rs 6.06 lakh crore. In the same period of financial year 2022-23, fiscal deficit stood at 20.5 percent of the Budget Estimate (BE).

In the Union Budget, the government has estimated to bring the fiscal deficit to 5.9 percent of the gross domestic product (GDP) in the current financial year 2022-23. Fiscal deficit in the financial year 2022-23 stood at 6.4 percent of GDP whereas earlier it was estimated to be 6.71 percent.

Unveiling the central government's revenue-expenditure data for the April-July period of fiscal year 2023-24, the CGA said the net tax revenue for the current fiscal year stood at Rs 5.83 lakh crore, or 25 percent of the budget estimate. Net tax revenue collection at the end of July 2022 stood at 34.4 percent.

The total expenditure of the central government in the first four months stood at Rs 13.81 lakh crore or 30.7 percent of the budget estimate. The expenditure in the same period a year ago was 28.6 percent of the budget estimate.

Of the total expenditure, Rs 10.64 lakh crore was in the revenue account and Rs 3.17 lakh crore in the capital account. Fiscal deficit is the difference between the total expenditure and revenue of the government. This is an indication of the total borrowing that the government needs.

Government's Chief Economic Advisor said this on inflation

On the other hand, CEA V Ananth Nageswaran said that there is no reason to worry on inflation. The government and the Reserve Bank are taking measures to maintain adequate supply. The Chief Economic Advisor to the central government said that food inflation is likely to come down due to arrival of fresh stocks and government measures. The effect of less rain in August will remain under watch.