India's Q3 GDP Grows At 4.4%, Lower Than Estimates

India's GDP for the third quarter ending Dec 31, 2022 came in came in below estimates at 4.4%. The reduction in GDP is largely on account of the fact that the low base effect seen due to the covid impact has been fading. Most analysts had predicted a GDP of around 4.6% for the quarter ending Dec 31, 2022.

"GDP at Constant (2011-12) Prices in Q3 2022-23 is estimated at ₹40.19 lakh crore, as against ₹38.51 lakh crore in Q3 2021-22, showing a growth of 4.4 percent. GDP at Current Prices in Q3 2022-23 is estimated at ₹69.38 lakh crore, as against ₹62.39 lakh crore in Q3 2021-22, showing a growth of 11.2 percent," a release has stated.

The estimates for the full financial year 2022-23 remains at 7%. "Real GDP or Gross Domestic Product (GDP) at Constant (2011-12) Prices in the year 2022-23 is estimated to attain a level of ₹ 159.71 lakh crore, as against the First Revised Estimate of GDP for the year 2021-22 of ₹ 149.26 lakh crore. The growth in GDP during 2022-23 is estimated at 7.0 percent as compared to that of 9.1 percent in 2021-22," the release stated.

The GVA came in at 4.8% largely in line with estimates. Going forward growth is seen to be more sluggish thanks to higher interest rates. In fact, analysts now see one more quarter point increase in the repo rate by the RBI going forward.

Meanwhile, Indian stock markets continued to fall as rising bond yields led to a belief that the economy may not yet be face the brunt of rising interest rates.