The gross domestic product is the most common representation of a country's economic progress and also becomes a political talking point in India. As the world's growth has been hit by recession and geopolitical tensions, economists had predicted a 5 per cent GDP growth for India, while the Reserve Bank of India pegged it at 5.1 per cent.
But the Indian economy has beat both estimates by a significant margin, to clock a 6.1 per cent GDP growth in the January-March quarter of FY23.
Here's the breakdown
This also indicates a 7.2 per cent growth in GDP for the entire year, defying a global slowdown which has bogged down even developed economies.
The report by India's ministry for statistics shows that the real GDP growth in FY23 has been 7.2 per cent, which is lower than 9.1 per cent in FY22.
According to Lakshmi Iyer, CEO-Investment & Strategy, Kotak Investment Advisors, "The economy is firing all cylinders as is seen in Q4 India GDP growth of 6.1%. This robust growth boosted by services, consumption, capital goods seem to suggest broad based recovery. While rural demand is yet to pick up, urban demand remains intact. This bodes well from a fiscal standpoint too, as tax buoyancy also improves. Additionally, we expect a positive impact on fiscal in FY 24 due to RBI dividend to government with macro tailwinds in India's favour, the stage seems set for a plateau in rates in coming months."
Growth for the nominal GDP between FY22 and FY23 has also been registered at 16 per cent.
The surge was led by the mining sector at 16.3 per cent, followed by construction at 10.4 per cent and agriculture at 10.3 per cent.
Kotak Cherry CEO, Srikanth Subramanian added that, " The GDP growth of 6.1% comes as a big surprise. This is the first time in the last financial year that the GDP numbers have beaten expectations and that too by a big margin. With strong GDP numbers we see Indian Economy being resilent amidst a challenging global environment. Along with impressive GST collection we feel government now is in a better position to achieve its fiscal deficit target of 4.5% by FY2026."