GDP preview: Why is India likely to retain fastest-growing economy tag

GDP preview: Why is India likely to retain fastest-growing economy tag

India’s economy, in the latest January-March quarter (Q4 FY23), is expected to show a much-improved growth sequentially and year-on-year, driven by the manufacturing and services sectors and an encouraging rise in private investment.

The official print for Q4 FY23 and full year FY23 will be released by the National Statistical Office later on Wednesday. Analysts expect Q4 GDP growth to be at least 5 per cent, and the consensus is that FY23 GDP growth will be around the official advance estimates of 7 per cent, which will make India the fastest growing major economy.

The Q3 FY23 (October-December) GDP came in at 4.4 per cent growth. In Q4FY22, GDP growth was 4 per cent.

“SBI’s model, based on 30 high frequency indicators from key sectors, and tuned/trained to project the GDP numbers forecasts the quarterly GDP growth for the Q4FY23 at 5.5 per cent. At this rate, India’s GDP growth for FY23 is likely at 7.1 per cent,” said Soumya Kanti Ghosh, chief economic advisor, State Bank of India Group.