India's GDP grows at 6.3 per cent in Q2; agriculture grows by 4.6 per cent while manufacturing contracts by 4.3 per cent

India's economy grew by 6.3 per cent in the second quarter of the current fiscal, official data released on Wednesday showed. What is significant is that agriculture has played a major role in this increase. While manufacturing and mining fell by 4.3 per cent and 2.8 per cent respectively, agricultural output rose by 4.6 per cent. The employment-generating construction sector saw a 6.6 per cent annual increase in activity.

The gross domestic product (GDP) had expanded by 8.4 per cent in the July-September quarter of 2021-22, according to data released by the National Statistical Office (NSO).

Real GDP or GDP at Constant (2011-12) Prices in Q2 2022-23 is estimated at Rs 38.17 lakh crore, as against Rs 35.89 lakh crore in Q2 2021-22, showing a growth of 6.3 per cent as compared to 8.4 per cent in Q2 2021-22.

Nominal GDP or GDP at Current Prices in Q2 2022-23 is estimated at Rs 65.31 lakh crore, as against Rs 56.20 lakh crore in Q2 2021-22, showing a growth of 16.2 per cent as compared to 19.0 per cent in Q2 2021-22.

Analysts had projected the Indian economy would expand at half of the growth rate of 13.5 per cent recorded in April-June quarter this fiscal.

According to the rating agency ICRA, the GDP was likely to grow at 6.5 per cent while the State Bank of India in its report projected the growth rate at 5.8 per cent for July-September 2022.

Earlier this month, in an article published in the Reserve Bank of India (RBI) bulletin, the GDP growth was pegged at 6.1-6.3 per cent in the second quarter of this fiscal year.

China registered an economic growth rate of 3.9 per cent in July-September 2022.

Meanwhile, the growth rate in the production of eight key sectors slowed down to 0.1 per cent in October against 8.7 per cent in the same month last year, according to the official data released on Wednesday.

In September, the core sectors' output growth stood at 7.8 per cent, the Ministry of Commerce and Industry said.

The production growth of eight infrastructure sectors — coal, crude oil, natural gas, refinery products, fertilizer, steel, cement and electricity — was 8.2 per cent during April-October this fiscal, compared to 15.6 per cent a year ago.

In October, crude oil, natural gas, refinery products and cement output recorded a negative growth rate.