Indian Economy Grows 7.8% In April-June, Compared To 6.1% In Last Quarter

The Indian economy grew 7.8 per cent in the April-June quarter, driven by high private consumption and investment, the fastest in a year that saw a sharp rise in inflation.

It marks a rise from a 6.1 per cent GDP growth in January-March quarter of the previous financial year. However, it fell short of the Reserve Bank of India's 8 per cent forecast.

The year-ago period, April-June quarter of 2022-23, saw a 13.1 per cent growth. The GDP growth in October-December was 4.5 per cent.

With China's logging 6.3 per cent growth in the first quarter, India remains the fastest-growing major economy.

The agriculture sector grew 3.5 per cent in the first quarter, up from 2.4 per cent in the year-ago period. In the manufacturing sector, growth dipped from 6.1 per cent to 4.7 per cent.

At a briefing this evening, Chief Economic Adviser V Anantha Nageswaran said that the construction sector will continue to expand in the coming years and the services sector will grow more vigorously than the manufacturing sector.

Meanwhile, the Combined Index of Eight Core Industries increased 8 per cent in July as compared to the year-ago period, according to Commerce Ministry.

The GDP growth figures for the ongoing July-September quarter will be released on November 30.

Days earlier, the government shared a graph of annual GDP growth rate of top economies in 2023, which showed India at the top spot. "India's economy stands tall among the top 10," the government said.

The graph showed India's GDP growth as 5.9 per cent following by China with 5.2 per cent and US with 1.6 per cent.