31/08/2023
India GDP Growth LIVE Updates: July core sector growth declines to 8 per cent; all eyes on GDP numbers
India GDP Growth News Live: India’s July core sector growth declined to 8.0% from 8.3% in June. The April-July core sector growth stood at 6.4% as against 11.5% in April-July 2022. On the other hand, India's economy in April to June likely grew at the fastest pace in a year, bolstered by central and state governments opening up their wallets for capex, stronger consumption demand and higher activities in the services sector, according to some economists.
A median forecast of an ET poll of 20 economists pegged the growth rate at 7.8 per cent for the first quarter of this financial year that started Apr. 1. The estimated range in the poll was 7.5-8.5 per cent. The Reserve Bank of India has forecast a growth rate of 8 per cent.
While India’s GDP grew 6.1 per cent in the March quarter of FY23, it had grown at 7.2 per cent in FY23 as a whole.
Meanwhile, India's fiscal deficit for the first four months of this fiscal year through July stood at 6.06 lakh crore rupees, or 33.9% of annual estimates, government data showed today.
The fiscal deficit widened from 20.5% reported in the comparable year-earlier period.
The wider fiscal deficit comes amid mushrooming speculations that the Narendra Modi-led government, which is seeking to return to power for the third term after Lok Sabha elections next year, will soon have to unleash various fiscal measures and particularly so as to rein in galloping inflation rate.
While the fiscal impact after the Indian government this week slashed LPG cylinder prices by Rs 200 per unit is seen to be limited as the move for now seems to only trim oil refiners’ profit margins, the rising clamor for the need to cut petrol and diesel prices may have an impact on budget gap. However, the robust surplus transfer of Rs 87,416 crore to New Delhi’s coffer by Reserve Bank of India has provided a big cushion and lifted non-tax revenues.
