India's GDP grew 6.1% in Q4FY23; full year GDP at 7.2%, better than estimates

India’s GDP growth numbers for the last quarter of FY23 and for the full year, come in much better than expected.

For the 4th quarter of FY23, GDP came in at 6.1% compared to 4.5% in Q3. This pushed the GDP growth for the full year to 7.2%, which is higher than the government’s own advance estimates of 7%. With this, India remains one of the fastest growing economies in the world. In FY22, GDP growth was 9.1%.

On a sectoral basis, in Q4FY23:

• Agriculture growth came in at 5.5%
• Mining growth came in at 4.3%
• Manufacturing grew 4.5%
• Trade hotels & transport at 9.1%
• Construction growth was 10.4%

Just last week, RBI governor Shaktikanta Das commented that he wouldn’t be surprised if the GDP number for FY23 came in higher than 7%. The GDP numbers indicate that the Indian economy has remained extremely resilient, especially in the last quarter of FY23, amid a slowdown in the global economy.

Meanwhile, data of 8 core sectors growth was also released. Production growth of key infrastructure sectors slowed down to a 6-month low of 3.5% in April 2023 compared to 3.6% in March. This slowdown in April was due to a decline in output of crude oil, natural gas, refinery products and electricity.