India's Q3 GDP growth declines to 4.4% amid high inflation
India's GDP (gross domestic product) growth for the third quarter of the current fiscal slowed down. Per data released by the National Statistical Organization (NSO), the GDP growth for Q3 FY23 came in at 4.4%, compared to 6.3% in Q2. The estimated growth in GDP for 2022-2023 remains unchanged at 7%. Meanwhile, the country's fiscal deficit touched 67.8% of the full-year target.
Real and nominal GDPs grew in Q3
According to the government data, the real GDP or GDP at constant prices in Q3 2022-2023 is estimated at Rs. 40.19 lakh crore, compared to Rs. 38.51 lakh crore in Q3 2021-2022, showing a growth of 4.4%. Nominal GDP or GDP at current prices in Q3 of FY23 is estimated at Rs. 69.38 lakh crore, against Rs. 62.99 lakh crore in FY22.
GDP growth of FY22 revised to 9.1%
The government has revised India's GDP growth for FY22 from 8.7% to 9.1%. Per the data, in FY23, real GDP is estimated to attain a level of Rs. 159.71 lakh crore, as against the first revised estimate of Rs. 149.26 lakh crore. Nominal GDP, on the other hand, is estimated to reach Rs. 272.04 lakh crore in FY22, showing a growth of 15.9%.
Q3 GDP growth is in line with RBI's prediction
India's GDP growth for Q3 is in line with the Reserve Bank of India's (RBI) estimate. During the Monetary Policy Committee (MPC) meeting in December, the central bank pegged the country's GDP in Q3 and Q4 to grow at 4.4% and 4.3%, respectively. The rating agency ICRA expected the country's GDP in the third quarter to grow by 5.1%.
India's fiscal deficit touched 67.8% of full-year target
The fiscal deficit from April to January of the current fiscal stood at Rs. 11.9 crore. This is 67.8% of the revised target. During the same period in the prior year, the fiscal deficit was 58.9% of the revised estimate in the budget. The government had made an upward revision of its fiscal deficit target for FY23 in the 2023 budget.
Net tax collection decreased, while expenses increased
According to government data, the country's net tax collection in the first 10 months of this fiscal was Rs 16.8 lakh crore or 80.9% of the revised estimate. In the same period last year, net tax collection was 87.7% of the revised estimate. The overall expenditure also saw an increase from Rs. 28.09 lakh crore to Rs. 31.68 lakh crore.
