Higher prices slow India's second-quarter GDP growth to 6.3%
GDP, considered to be the broadest indicator of earnings created, is the total of all products and services produced in an economy.
According to official figures issued by the ministry of statistics and program implementation on Wednesday, India's real (inflation adjusted) gross domestic product (GDP) grew 6.3% in the July-September quarter, far slower than the previous quarter's 13.5% growth.
The data revealed that gross value added, which excludes subsidies and indirect taxes, increased 5.6% year over year in the second quarter as opposed to 12.7% in the first. GDP growth for the quarter of July to September 2021–2022 was 8.4%. GDP, considered to be the broadest indicator of earnings created, is the total of all products and services produced in an economy.
Amongst important economic sectors, manufacturing saw a 4.3% decline and agricultural growth of 4.6%. The figures showed a 6.6% yearly growth in economic activity in the construction industry. Compared to an increase of 6.5% in the preceding three months, the mining sector decreased by 2.8%.
According to figures released on Wednesday, nominal GDP at current prices was estimated to have increased to 65.31 lakh crore in the second quarter of FY22 from 64.95 lakh crore in the prior quarter.
As the Center expanded spending on infrastructure, including roads and railroads, the government's capital investment climbed by more than 40%.
Separate data revealed that in October, the growth rate in output for eight important sectors dropped to 0.1% from 8.7% in the same month last year. The core sectors' output increase in September was 7.8%.
According to Garima Kapoor, economist at Elara Capital, "even though domestic growth drivers on the services sector continue to be healthy, decreasing global demand amid tightening financial conditions remains the fundamental concern for growth forecast for India."
The government "will continue to focus on growth through capital expenditure," the finance minister Nirmala Sitharaman said on Wednesday at the Reuters NEXT conference, as it gets ready for the upcoming national budget, which is anticipated to be released on February 1.
The federal government increased spending on infrastructure, including roads and railroads, throughout the quarter, resulting in a more than 40% increase in government capital spending.
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