The National Statistical Office (NSO) on Wednesday revealed data showing that India’s GDP expanded at its quickest rate in a year during the April-June quarter.
During the three months that ended on June 30, 2022, India’s GDP increased by 13.5%.
On the other hand, this is less than the Reserve Bank of India’s predicted 16.2% GDP growth for Q1FY23. Q1FY22 saw a 20.1% increase in India’s GDP.
The GDP increased 4.1% from January to March compared to the same period last year.
In April through June of 2021, when it was 20.1% higher than the pandemic-depressed level of the previous year, India’s GDP had its last greater annual growth.
However, economists predict that as increased interest rates have a negative impact on economic activity, India’s economic development will abruptly drop down in the coming quarters.
Issuing a caution over the effects of a global downturn on local development prospects, the Reserve Bank of India (RBI) increased its benchmark repo rate by 140 basis points since May, including 50 basis points this month.
Numerous economists predict that rates will rise again by around 50 basis points the following month, then by another 25 basis points.
The increase in the cost of food and fuel has had a significant impact on consumer spending, which makes up nearly 55% of economic activity, even if monthly inflation has subsided over the past three months.
Due to the base effect, many analysts predicted that the Indian economy would grow at a double-digit rate.
Icra, a ratings organisation, predicted that the gross domestic product will expand by 13% between April and June 2022, whereas State Bank of India had predicted a growth rate of 15.7%.
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