Continuing with the trend of recovery of the economy following the devasting effects of the Covid-19 pandemic, the Indian economy grew by 13.5% during the first quarter of the current financial year. It was revealed in the estimates of Gross Domestic Product for the April – June quarter of the FY 2022-23 published by the Ministry of Statistics & Programme Implementation.
The ministry said that the real GDP at Constant (2011-12) Prices in Q1 2022-23 is estimated to attain a level of ₹ 36.85 lakh crore, as against ₹ 32.46 lakh crore in Q1 2021-22, showing a growth of 13.5 percent as compared to 20.1 percent in Q1 2021-22. On the other hand, nominal GDP or GDP at Current Prices in Q1 2022-23 is estimated at ₹ 64.95 lakh crore, as against ₹ 51.27 lakh crore in Q1 2021-22, showing a growth of 26.7 percent as compared to 32.4 percent in Q1 2021-22.
The Quarterly Estimates of National Accounts are indicator based and data sourced from various Ministries/ Departments/ Private Agencies were used as valuable inputs in the compilation of the estimates. The sector-wise estimates have been compiled using various indicators like Index of Industrial Production (IIP), financial performance of listed companies in the Private Corporate Sector based on available quarterly financial results for these companies, Crop Production Targets for 2022-23, Production Targets for Major Livestock Products for 2022-23, Fish Production, Production/ Consumption of Cement and Steel, Net Tonne Kilometres and Passenger Kilometres for Railways, Passenger and Cargo traffic handled by Civil Aviation, Cargo traffic handled at Major Sea Ports, Sales of Commercial Vehicles, Bank Deposits & Credits, Accounts of Central & State Governments, etc., available for Q1 2022-23.
According to the ministry, GDP is derived as the sum of the gross value added (GVA) at basic prices, plus all taxes on products, less all subsidies on products. The total tax revenue used for GDP compilation includes both Non-GST Revenue and GST Revenue.
Among various sectors, Public Administration, Defence and Other services sector showed the highest growth rate of 26.3% at constant prices, with Trade, Hotels, Transport, Communications and Broadcasting coming second at 25.7%. Agriculture grew by 4.5% in the quarter and manufacturing grew by 4.8%.
However, these are estimates and the data will undergo changes in revised estimates to be published later, as individual source agencies will revise their numbers as per data release calendar.
During the same period, the fiscal deficit of the government stood at 20.5% of the full-year target, which was 21.3% in the first quarter of the last FY, showing an improvement. During April-July 2022, the fiscal deficit of the country, or the difference between revenue and expenditure, was ₹3.41 lakh crore.
The government’s receipts, including taxes, stood at ₹7.85 lakh crore or 34.4% of the Budget Estimates (BE) for 2022-23. According to data released by the Controller General of Accounts (CGA), Net tax receipts was ₹6.66 lakh crore while total expenditure was ₹11.27 lakh crore during this period.
The union govt is targeting a fiscal deficit of 6.4% of the GDP for financial year. July was particularly good in this regard, as the govt posted a surplus of Rs 11,040 crore for the month.
