India’s GDP Growth numbers released

India released its provisional estimates of GDP growth numbers today.

These numbers are:

Q1 – 13.5% (Apr-Jun,2022) – Actual

Q2 – 6.3% (July-Sep,2022) – Actual

Q3 – 4.4% (Oct-Nov,2022) – Actual

Q4 – 6.1% (Jan-Mar,2023) – Provisional (Expected)

Annual GDP Growth = 7.2%. – Provisional (Expected)

Last year, this growth number was 9.1%.

China also released its annual growth numbers. Its economy has grown by 4.5% this year.

While in most sectors, the growth is lower than it was in 2021-22, it is higher than expected.

60.6% of India’s GDP comes from private consumption, 10.3% from government final consumption, and the remaining 29.2% comes from fixed capital formation.

A very interesting Annexure shared by the Ministry of Statistics along with the GDP numbers gives us some important indicators for the economy.

Image Credit: MoSPI

Questions for you

  1. What, in your view, are the most striking numbers in this sheet?
  2. Exports grew by 22.9 percent while imports grew by 27.1%. This means that India’s trade balance (exports – ikmports) is becoming more negative.
  3. However, the growth rate of exports went down from 37% to 22.9% – a 38% fall. While the growth rate of imports went from 49.5 – 27.1% – a fall of 45%. This means that imports are not rising as fast as exports, and India is improving its foreign trade balance. Which view would you agree with? Why?
  4. The drop in the growth of metallic minerals is shocking – from a 24.8% growth, we went to just 1.3% growth. Why do you think that happened?