Indian economy grows 7.8 per cent in April-June

The Indian economy grew 7.8 per cent in the April-June quarter, driven by high private consumption and investment, the fastest in a year that saw a sharp rise in inflation.It marks a rise from a 6.1 per cent GDP growth in January-March quarter of the previous financial year. However, it fell short of the Reserve Bank of India's 8 per cent forecast. The year-ago period, April-June quarter of 2022-23, saw a 13.1 per cent growth. The GDP growth in October-December was 4.5 per cent.
The agriculture sector grew 3.5 per cent in the first quarter, up from 2.4 per cent in the year-ago period. In the manufacturing sector, growth dipped from 6.1 per cent to 4.7 per cent.“Quarterly Estimates of GDP are indicator based and are compiled using the benchmark-indicator method, i.e., quarterly estimates available for the previous year referred to as the benchmark year are extrapolated using the relevant indicators reflecting the performance of sectors”, the government said in a statement.
With China's logging 6.3 per cent growth in the first quarter, India remains the fastest-growing major economy.The International Monetary Fund (IMF) has adjusted its outlook for India's GDP growth in 2023, upgrading it to 6.1 per cent. In June, Fitch Ratings also revised its prediction for India's economic growth in the fiscal year 2023-24 (FY24), elevating it to 6.3 per cent from the prior forecast of 6 per cent.