Indian Economy Maintains Momentum: 7.8% Growth in Q1 2023-24

The Indian economy grew by 7.8% in the first quarter ( April to June)  of 2023-24 as compared to 13.1 percent in Q1 2022-23. However it was below the Reserve Bank of India 8% forecast  for the first quarter. India still remains the fastest growing major economy in the world as the Chinese economy grew by 6.3% during April -June quarter in 2023.

The growth rate of the Indian economy in 2022-23 was 7.2%.

The data regarding the performance of the Indian economy in the first quarter of the fiscal year 2023-24 was released by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation on 31 st August 2023.

GDP  growth rate  at constant price(2011-12 base year) 

GVA=GDP + subsidies on products – taxes on products.

Nominal GDP

The Nominal GDP at Current Prices in the first quarter of 2023-24 is estimated at Rs 70.67 lakh crore against ₹ 65.42 lakh crore in the same time period of  2022-23, showing a growth of 8 percent.

 While calculating the nominal GDP the market price of goods and services are included. It makes no adjustment for inflation 

GDP at Constant Price or Real GDP

The Real Gross Domestic Product (GDP) at Constant Price  (2011-12) in the first quarter of 2023-24 is estimated at Rs 40.37 lakh crore,  as against ₹ 37.44 lakh crore in the same period in 2022-23, showing a growth of 7.8 percent.

While calculating the GDP at constant price the price rise in the goods and services due to inflation is not counted . Prices are fixed to a base year . It measures the actual increase in the production of goods and services . 

GDP at constant price is the best indicator to measure the growth of an economy.

Expected GDP growth rate in fiscal year 2023-24

The Reserve Bank of India expects the Indian Economy to grow by 6.5% in 2023-24.

Chief Economic Adviser V Anantha Nageswaran expects the Indian economy to grow by 6.5% in 2023-24.