Economy grows by 4.4% in Dec. quarter

New Delhi: The Indian economy has grown 4.4 per cent in the October-December quarter of the current fiscal compared to 11.2 per cent in the same period a year ago. The growth estimate, however, for this fiscal remained unchanged at seven per cent, the government data showed on Tuesday.

In line with expectations of many economists, the government data showed a moderation in the growth momentum due to weak demand amid aggre-ssive rate hikes by the Reserve Bank of India to tame inflation to some extent. Since May 2022, the RBI has cumulatively increa-sed the key lending rate by 250 basis points.

The moderation in numbers may be also linked with the normalisation of base under the base effect.

A slowdown in external demand could be a consequence of the rate hikes by major central banks around the world.

As per the government data, the gross domestic product or GDP at constant (2011-12) prices in Q3 2022-23 is estimated at ₹40.19 lakh crore, as against ₹38.51 lakh crore in Q3 2021-22, showing a growth of 4.4 per cent.

“The GDP at Current Prices in Q3 2022-23 is estimated at ₹69.38 lakh crore, as against ₹62.39 lakh crore in Q3 2021-22, showing a growth of 11.2 percent,” it showed.

In the previous June-September quarter, the economy had grown at 6.3 per cent, down from 13.5 per cent in the April-June quarter. The economy had grown at 5.4 per cent in the same period last year. The National Statistical Office (NSO) has also revised India’s economic growth in 2021-22 upwards to 9.1 per cent from 8.7 per cent earlier.

Earlier this month, RBI governor Shaktikanta Das said that GDP is expected to grow at 6.4 per cent for 2023-24. The growth for the first quarter is pegged at 7.8 per cent, while this number could be 6.2 per cent in Q2, 6 per cent in Q3 and 5.8 per cent in Q4.