Indian Economy Remains Resilient with 7.8% Growth in Q1 of FY 2023-24

India emerges as the fastest-growing major economy in the April-June 2023 quarter.

At 7.8% year on year, India’s growth rate towers above the growth rate in several other leading economies.

India’s economy demonstrated resilience in the first quarter of the fiscal year 2023-24, with a GDP growth rate of 7.8 percent. This growth marks an improvement from the 6.1 percent growth observed in the previous quarter of fiscal year 2022-23 (January-March).

The National Statistical Office (NSO), under the Ministry of Statistics and Programme Implementation, has released the GDP estimates for the first quarter (April-June) of the fiscal year 2023-24. These estimates include GDP figures at both Constant (2011-12) and Current Prices.

Quarterly Estimates by NSO

The Quarterly Estimates of GDP are compiled using the benchmark-indicator method. This involves extrapolating quarterly estimates for the current year based on relevant indicators that reflect the performance of various sectors. These indicators are sourced from various Ministries, Departments, and Private Agencies and are essential inputs for estimating GDP.

Some of the key indicators used in this process

  • Index of Industrial Production (IIP)
  • Financial performance of listed companies in the Private Corporate Sector based on quarterly financial results
  • Crop Production Targets for the Fiscal Year 2023-24
  • Production Targets for Major Livestock Products for 2023-24
  • Fish Production
  • Production/Consumption of Cement and Steel
  • Net Tonne Kilometres and Passenger Kilometres for Railways
  • Passenger and Cargo traffic handled by Civil Aviation
  • Cargo traffic handled at Major and Minor Sea Ports
  • Sales of Commercial Vehicles
  • Bank Deposits and Credits
  • Accounts of Central and State Governments

These indicators help in estimating the performance of various sectors in the economy, which in turn contributes to the calculation of GDP for a specific quarter.

Real GDP Growth

Real GDP Growth

In the first quarter of the fiscal year 2023-24, India’s Real GDP, measured at Constant (2011-12) Prices, reached approximately ₹40.37 lakh crore. This represents a 7.8 percent growth compared to the first quarter of the previous fiscal year 2022-23 when it was ₹37.44 lakh crore.

Nominal GDP Growth

Nominal GDP Growth

On the other hand, the Nominal GDP, measured at Current Prices, in the first quarter of 2023-24 is estimated at ₹70.67 lakh crore, compared to ₹65.42 lakh crore in the first quarter of 2022-23, indicating a growth of 8.0 percent in the current quarter compared to a much higher growth of 27.7 percent in the same quarter of the previous fiscal year 2022-23.


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