India's GDP grows 13.5 per cent In June quarter, fastest in a year

India's economy grew 13.5 per cent in the April-June quarter from a year ago, its fastest annual expansion in a year, but lower than broadly predicted by economists, analysts and the Reserve Bank of India. GDP in the first quarter (April-June) of the fiscal year grew by 13.5 per cent, as against a 20.1 per cent growth seen during the same period last year, data released by the National Statistical Office (NSO) showed on Wednesday. Private investment during April-June increased 20.1 per cent from a year ago, data show. Government spending rose 1.3 per cent while private consumption was up 25.9 per cent. India's economic recovery process will likely continue to be weighed-in by rather weak labour market recovery and quite benign wage outlook hinting at weak domestic consumption outlook, Societe Generale's Kunal Kundu said. 

Many analysts had projected the Indian economy will expand at a double-digit growth rate due to the base effect. According to rating agency Icra, the GDP was likely to grow at 13 per cent while the State Bank of India in its report, projected the growth rate at 15.7 per cent for April-June 2022. Imported goods are now more expensive for individuals and businesses due to this year's depreciation of the rupee against the dollar of more than 7 per cent. Other data releases for India on Wednesday showed the core sector output, or the infrastructure factories output, expanded 4.5 per cent year-on-year in July. The production growth of eight infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity -- was 11.5 per cent in April-July this fiscal against 21.4 per cent a year ago.