The country's growth rate is 7.2 percent in 2022-23, with a higher-than-expected growth for the third year in a row

- Despite inflation, global challenges, the growth of Indian economy ran full speed

- Consumer purchases increased by 15 percent to Rs. 21.50 lakh crore, accounting for 58 percent of GDP growth

- Agriculture, housing, infrastructure, hotels and transport also contributed significantly to the year's GDP

Ahmedabad: The economic growth rate (Gross Domestic Product or GDP) for the financial year 2022-23 has been higher than expected at 7.2 percent as consumers continue to buy in the country despite the burden of low inflation. After the economic growth was 4.5 percent in the third quarter of the year i.e. October to December, the growth rate in the fourth quarter of January to March was 6.1 percent. The impact of higher growth rates in agriculture (four per cent), financial services (7.1 per cent), trade, hotels and transport (14 per cent) for the entire year has also been seen in India's economy, which is the fastest growing in the world. The per capita income has increased by Rs.24,978 from last year to Rs.1,93,044 which shows a growth of 14.9 percent over last year.

The war between Russia and Ukraine started in February 2022 and the challenge of historical high inflation due to it arose before the world. Apart from this, there was also a start of withdrawal of the policy of abundant money in the market during the corona epidemic and record low interest rates. Despite rising interest rates, inflation and global challenges, the Indian economy has maintained its growth momentum with the support of domestic consumer purchases. For the third year in a row, the country's economic growth rate came in higher than preliminary estimates and economists' calculations at the beginning of the year, supported by consumer purchases.

For the year as a whole, the real GDP (ie at constant 2011-12 prices, excluding the effect of inflation) GDP stood at Rs.160.06 lakh crore. It has seen an increase of Rs.10.80 lakh crore against last year's Rs.149.25 lakh crore. Consumer purchases account for 61 percent of this growth. It is known from the preliminary estimate of GDP released by the central government today that consumers have purchased Rs.6,55,153 crore. At current prices, GDP has increased by Rs.37.69 lakh crore to Rs.272.40 lakh crore in which private final consumption or consumer consumption has a share of Rs.21.50 lakh crore or 58 percent.

There is not much impact on consumer purchases or spending in 2022-23. The average consumer price for the entire year was around 7 percent. Considering the growth rate of GDP at current prices to be 15.1 percent and 7.2 percent at constant prices, the impact of inflation in the calculation of GDP has been 8.9 percent. Due to the effect of this inflation, consumer purchases at constant prices have increased by 15 percent at the rate of 7.5 percent even at current prices, which has also had an impact on the tax revenue of the government.

Gross value added (ie GVA calculated as gross value added from GDP minus taxes) increased by seven per cent at constant prices compared to 15.4 per cent at current prices in 2022-23. Taxes have increased sharply against the growth of both GDP and GVA. The tax increase has been calculated at 22.9 percent at current prices and 10.1 percent at constant prices.

However, the performance of the manufacturing sector during the financial year 2022-23 has been normal. After the corona epidemic, the production increased, the growth of the manufacturing sector was 11.1 percent in the year 2021-22, which decreased to only 1.3 percent in 2022-23. In the fourth quarter of January to March, the growth of the manufacturing sector has been 4.5 percent. Growth in the manufacturing sector like agriculture, construction, telecom has also been important in the growth rate of 6.1 percent in the fourth quarter. In the third quarter of October-December, the growth of the manufacturing sector was a negative 1.4 percent.

Unseasonal rains were a threat to rabi crop production in the fourth quarter but now the official estimate of four per cent growth seems to have picked up production. In addition, for the entire year, consumer housing and government investment in infrastructure led to growth in construction sector (10 percent growth), trade, hotels, transportation (14 percent), financial services (7.1 percent) at the retail level. In contrast, mineral production (4.6 percent), electricity and water supply (9 percent) and public services (7.1 percent) increased, but growth in these sectors of the economy slowed from last year.