India's economic growth rate in the first quarter of 2023 was 6.1%, which is higher than the previous quarter's growth rate of 4.5% and well above market forecasts of 5%. This growth was mainly boosted by private consumption,
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| India economy growth |
What is the growth rate of India economy in 2023?
services exports and manufacturing amid easing input cost pressures. Also, services have emerged as a major driver, comprising more than half of GDP.
The International Monetary Fund (IMF) has also revised its growth forecast for India in 2023 to 6.1%, up from its previous estimate of 5.9%. The IMF said that the Indian economy is "poised for a strong recovery" in 2023, driven by strong domestic demand and rising exports.
The government of India has set a target
of 8% GDP growth for the current financial year. However, it remains to be seen whether the economy will be able to achieve this target, given the headwinds that it is facing, such as rising inflation and the ongoing war in Ukraine.
Overall, the 6.1% growth rate is a positive sign for the Indian economy. However, it is important to note that this growth is still below the pre-pandemic level of 7.3%. The government will need to take steps to boost investment and productivity in order to achieve its 8% growth target.
More on this, strong domestic investment
led to stronger-than-expected growth in the December quarter. And in the last financial year, the Indian economy has grown more than expected, rising to 7.20 percent. Neighboring China is estimated to grow by 5.20 percent in 2023 and 4.50 percent in 2024, while India retains its status as the fastest growing economy.
Also, India's growth for FY 2024-25 is projected to be 6.30 percent, while global growth is projected to be 3.00 percent in 2023, up from 2.80 percent earlier. Global inflation is expected to be 6.80 percent in 2023 and 5.20 percent in 2024.