Growth in India’s Gross Domestic Product (GDP) and the Gross Value Added (GVA) in the economy sped to 7.8% in the first quarter of this year.
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Growth in India’s Gross Domestic Product (GDP) and the Gross Value Added (GVA) in the economy sped to 7.8% in the first quarter of this year, as per estimates released by the National Statistical Office (NSO) on August 31.

GDP growth stood at 6.1% in the January to March 2023 quarter and at 13.1% in the first quarter of 2022-23. GVA growth in the previous quarter was 6.5%, while it was 11.9% in the April to June 2022 period.

Manufacturing GVA grew for the second quarter in a row, with the pace of growth picking up slightly to 4.7% in Q1 of 2023-24, from 4.5% in the previous quarter. Agriculture, Forestry and Fishing GVA grew 3.5% between April to June, while it was the Services sectors that recorded the sharpest surge.

Financial, Real Estate and Professional Services GVA grew 12.2% in Q1, while GVA from Trade, Hotels, Transport, Communication and Services related to broadcasting rose 9.2%.

The Gross Value Added from Public Administration, Defence and Other Services, as well as the employment-intensive Construction sector rose 7.9% each.

GVA from Electricity, Gas, Water Supply and Other services grew just 2.9%, while Mining and Quarrying GVA grew 5.8%.

“Real GDP in Q1 2023-24 is estimated to attain a level of ₹40.37 lakh crore, as against ₹37.44 lakh crore in Q1 2022-23, showing a growth of 7.8% as compared to 13.1% in Q1 2022-23,” the NSO said.

“Although a supportive base propelled India’s GDP growth to a four-quarter high of 7.8% in Q1, it nonetheless printed below our expectations of 8.5% as well as the central bank’s Monetary Policy Committee’s projection of 8%,” said ICRA chief economist Aditi Nayar. She attributing the slower than expected growth largely to the meek uptick in manufacturing that has been hit by falling exports, and a deceleration in the construction sector.