The GDP growth of 13.5 per cent in Q1 lead India cross the pre-pandemic level by 3.8 per cent. Since April 2022, India completely withdrew from lockdowns. The central government is working on a consolidation path and has budgeted to bring down the GFD-GDP ratio to 6.4 per cent from 6.7 per cent in 2021-22 and 9.2 per cent in 2020-21
Union Finance Minister Nirmala Sitharaman said that in a world of uncertainties, India is among the few standout performers, on 14 October. She said this a day after the International Monetary Fund (IMF) quoted India as a bright spot, despite facing an imminent recession in a global economy.
“In a world of uncertainties, India is one of the very few standout performers,” the minister said, while addressing the International Monetary Finance Committee during the ongoing annual meeting of the World Bank and the IMF.
Sitharaman quoted that according to India’s National Statistical Organisation (NSO), the GDP growth of India for Q1FY22-23 stands at 13.5 per cent on a year-on-year basis. This came out as the highest among the large economies.
She said that even though India started the monetary normalisation process quite early, we could achieve this. The interest rate hiked from May and the surplus liquidity currently is being absorbed with the Standing Deposit Facility which was instituted in April 2022.
The central government is working to consolidate and has budgeted to bring down the GFD-GDP ratio to 6.4 per cent from 6.7 per cent in 2021-22 and 9.2 per cent in 2020-21, the minister noted.
Further, to empower the foundations for medium-term growth, the government expenditure is now moving towards capital instead of revenue, she added.
According to Sitharaman, the GDP growth of 13.5 per cent in Q1 lead India cross the pre-pandemic level by 3.8 per cent. Since April 2022, India completely withdrew from lockdowns.
Talking on investment, the minister said, gross fixed capital formation (GFCF) growth went up to 20 per cent in Q1. This was driven majorly by governments and public sector undertakings (PSUs) in the transport sector. Housing, construction, steel, pharma and IT in the private sector also contributed in the same
Proximate indicators such as cement, steel, IIP capital goods, non-gold and non-oil imports, and capacity utilisation, have also reflected certain growth.
“Double digits are growth can be witnessed both in exports and imports however, as compared to exports, import growth is more robust. It reflects the comeback of the domestic economy and the divergent slowdown in the global economy,” Sitharaman said.