Editor's Pick: GDP expanded 6.1% in last quarter of FY 2022-23

In the January-March quarter, India’s GDP growth accelerated to 6.1%, implying that the economy expanded at 7.2% in the financial year 2022-23 from 7% as estimated earlier. The gross value added (GVA) is reckoned to have risen 7% in financial year 2022-23 compared with 8.8% in 2021-22. Manufacturing GVA growth slid to just 1.3% from 11.1% a year earlier, despite a 4.5% rebound in the final quarter after six months of contraction. Economists noted that several sectors delivered a positive surprise, especially in the last quarter of the year, consumption remained tepid, and the overall growth pattern remains uneven. Aditi Nayar, Chief Economist at ICRA, noted, “The positive surprise in the GVA growth for Q4 FY2023 relative to our forecast was largely driven by the industrial sector. Manufacturing growth rebounded to a YoY growth of 4.5% in Q4 FY 2023 after having contracted in each of the last two quarters, amid an uptick in the YoY growth in manufacturing volumes as well as an improvement in margins during the quarter, partly on account of a sustained moderation in input costs.” However, the growth estimates for the first and the second quarters were pared to 11.9% and 5.4% respectively, while the third quarter GVA growth was revised higher to 4.7% from the 4.6% as reckoned earlier. Economists were concerned about the contraction in exports and their impact on employment, and the impact of a potential El Nino on crops, food prices and farm incomes. Irrespective of this, with inflation expected to be moderate, some believe that RBI would likely not look to increase rates anytime in the ongoing calendar year. Was this newsletter forwarded to you? Head over to our newsletter subscription page to sign up for Editor’s Pick and more. Click here. The Hindu’s Editorials Uncertain showers: On monsoon information and the Indian farmer Status quo in Turkey: On the new term for Recep Tayyip Erdoğan The Hindu’s Daily News Quiz What percentage of notes were withdrawn from circulation during the demonetisation exercise in 2016? 94% 86% 68% 49% To know the answer and to play the full quiz, click here. [logo] Editor's Pick 01 June 2023 [The Hindu logo] In the Editor's Pick newsletter, The Hindu explains why a story was important enough to be carried on the front page of today's edition of our newspaper. [Arrow]( [Open in browser]( [Mail icon]( [More newsletters]( GDP expanded 6.1% in last quarter of FY 2022-23 In the January-March quarter, India’s GDP growth accelerated to 6.1%, implying that the economy expanded at 7.2% in the financial year 2022-23 from 7% as estimated earlier. The gross value added (GVA) is reckoned to have risen 7% in financial year 2022-23 compared with 8.8% in 2021-22. Manufacturing GVA growth slid to just 1.3% from 11.1% a year earlier, despite a 4.5% rebound in the final quarter after six months of contraction. Economists noted that several sectors delivered a positive surprise, especially in the last quarter of the year, consumption remained tepid, and the overall growth pattern remains uneven. Aditi Nayar, Chief Economist at ICRA, noted, “The positive surprise in the GVA growth for Q4 FY2023 relative to our forecast was largely driven by the industrial sector. Manufacturing growth rebounded to a YoY growth of 4.5% in Q4 FY 2023 after having contracted in each of the last two quarters, amid an uptick in the YoY growth in manufacturing volumes as well as an improvement in margins during the quarter, partly on account of a sustained moderation in input costs.” However, the growth estimates for the first and the second quarters were pared to 11.9% and 5.4% respectively, while the third quarter GVA growth was revised higher to 4.7% from the 4.6% as reckoned earlier. Economists were concerned about the contraction in exports and their impact on employment, and the impact of a potential El Nino on crops, food prices and farm incomes. Irrespective of this, with inflation expected to be moderate, some believe that RBI would likely not look to increase rates anytime in the ongoing calendar year. Was this newsletter forwarded to you? Head over to our newsletter subscription page to sign up for Editor’s Pick and more. [Click here](. The Hindu’s Editorials [Arrow][Uncertain showers: On monsoon information and the Indian farmer]( [Arrow][Status quo in Turkey: On the new term for Recep Tayyip Erdoğan]( The Hindu’s Daily News Quiz What percentage of notes were withdrawn from circulation during the demonetisation exercise in 2016? - 94% - 86% - 68% - 49% To know the answer and to play the full quiz, [click here](. 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