Despite Q2 GDP slowing to 6.3% India remains fastest growing economy

India's economic growth slowed down to 6.3 per cent in the July-September quarter of this fiscal, dragged down mainly by the poor performance of manufacturing and mining sectors, official data showed on Wednesday.

IMAGE: Kindly note that this image has been posted for representational purposes only. Photograph: Shailendra Andrade/Reuters.

However, India remained the fastest-growing major economy as China registered an economic growth of 3.9 per cent in July-September 2022.

The Indian economy grew by 8.4 per cent in July-September, 2021-22, as per the data released by the National Statistical Office (NSO). The gross domestic product (GDP) expanded by 13.5 per cent in the April-June quarter this fiscal.

The second quarter GDP growth is almost at par with the RBI's projection of 6.1 per cent to 6.3 per cent released earlier this month in one of the articles published in its bulletin.

"Real GDP or GDP at Constant (2011-12) Prices in Q2 2022-23 is estimated at Rs 38.17 lakh crore, as against Rs 35.89 lakh crore in Q2 2021-22, showing a growth of 6.3 per cent as compared to 8.4 per cent in Q2 2021-22," the NSO statement said.

The real GDP in absolute terms stood at Rs 33.10 lakh crore in the July-September quarter of 2020. It had contracted by 6.6 per cent in the second quarter of 2020-21 on account of the staggering impact of lockdown restrictions to curb the spread of coronavirus.

As per the data, Gross Value Added (GVA) grew by 5.6 per cent to Rs 35.05 lakh crore in July-September this year.

The GVA growth in the farm sector is 4.6 per cent in the second quarter compared to 3.2 per cent a year ago.

However, the GVA in the manufacturing sector contracted 4.3 per cent during the quarter from 5.6 per cent growth during the year-ago period.

GVA in mining also declined by 2.8 per cent in the quarter compared to 14.5 per cent growth. The GVA growth in the construction sector also decelerated to 6.6 per cent in the quarter from 8.1 per cent.

The electricity, gas, water supply and other utility services segment grew by 5.6 per cent in the quarter compared to 8.5 per cent a year ago. GVA growth in the services sector -- trade, hotel, transport, communication and services related to broadcasting -- was 14.7 per cent during the second quarter against 9.6 per cent.

Financial, real estate and professional services grew by 7.2 per cent in the first quarter over 6.1 per cent earlier.

Public administration, defence and other services posted 6.5 per cent growth against 19.4 per cent in the second quarter of the last fiscal.

The NSO stated that Nominal GDP or GDP at Current Prices in Q2 2022-23 is estimated at Rs 65.31 lakh crore, as against Rs 56.20 lakh crore in Q2 2021-22, showing a growth of 16.2 per cent as compared to 19.0 per cent in Q2 2021-22.