Delhi News Desk!!! India’s economic growth slowed for the second consecutive quarter to 4.4 per cent in the October-December period of the current fiscal due to weak demand and high inflation. The Ministry of Statistics and Program Implementation gave this information in the data released on Tuesday. Reacting to the numbers, Care Ratings Chief Economist Rajni Sinha told IANS, “GDP (gross domestic product) growth of 4.4 per cent is marginally lower than our expectations. This was expected, but continued contraction in GDP. The manufacturing sector comes as a negative surprise.” While the pace of consumption continues, the decline in investment to GDP ratio from 34 in the previous quarter to around 32 is worrying, he said. While exports continue to weaken, imports are also slowing, with net exports being lower in Q3 than in the previous quarter.
According to him, with external demand conditions remaining weak, it is important that domestic demand picks up. Improvement in rural demand and increase in rural wages are positive developments in aggregate demand. “However, demand is expected to moderate as seen in the last few quarters. Government’s focus on capex and improvement in private sector intent to invest should support investment demand,” Sinha said. GDP growth to moderate to 6.1 per cent in FY24.” According to Suman Chowdhary, chief analysis officer, Acute Ratings & Research, the lack of momentum in rural demand and weakness in exports have been partially offset by steady demand for goods and services in the urban economy.
With some support from the base factor, this should help the economy print close to 7 per cent in FY23. “Going into the next fiscal, factors that will play a key role are the impact of higher interest rates on urban demand, stability of monsoon and absence of base factor, a fiscal year without any additional risk from monsoon and external factors,” Choudhary said. 24 for 6 percent.” GDP growth in the September-quarter of 2022-23 was 6.3 percent. The second quarter growth was almost half of the 13.2 per cent increase seen in the April-June quarter of the current fiscal. The Reserve Bank of India (RBI) had suggested a growth rate of 4.4 per cent for the last quarter of 2022-23, though this projection was based on the annual GDP estimate of 6.8 per cent by the central bank. The First Advance Estimates of GDP released last month suggested a growth of 7 per cent for 2022-23. According to the second advance estimate released on Tuesday, the growth rate of 7 per cent has been retained for the current financial year.
–IANS
SGK/ANM