India's GDP growth declines to 6.3% in Sept quarter

Wednesday 07th December 2022 05:09 EST

India’s gross domestic product (GDP) growth slowed in the July-September quarter due to a number of factors, including high inflation and rising interest rates, impact of the geopolitical situation and contraction in manufacturing and mining sectors, but policymakers said growth was expected to be in the 6. 8%-7% range for 2022-23.

Data from the National Statistical Office (NSO) revealed that the economy grew more slowly than the 13. 5% estimate for the months of April and June and the 8. 4% estimate for the months of July and September 2021–22. The most recent reading, however, was in line with the Reserve Bank of India's (RBI) second quarter estimate of 6.3%.

Economists said that a positive trend was the rebound in growth on a sequential (quarter-on-quarter) basis. The trade hotels, transport, communication and services related to broadcasting posted robust growth during the three month period at 14.7%. All the sectors were above their pre-pandemic level, economists said.

"The economy is on course to grow by 6.8 to 7% in the current fiscal year. The economy has maintained momentum, especially in the wake of global headwinds, according to festival sales, bank credit growth, and purchasing managers indices, chief economic adviser (CEA) V Anantha Nageswaran told reporters. He also noted that domestic demand will drive growth and that the external environment was uncertain and that exports were not performing as well as they did last year.

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