As per the second advance estimate released by the Union Ministry of Statistics and Programme Implementation, Indian economy grew at 4.4 percent in the third quarter of FY23. The growth rate was much lower than the growth of 6.3 percent recorded in the second quarter of FY23 and 13.2 percent recorded in the first quarter of FY23. A year ago the country had grown at 5.2 percent during Q3FY22.
The fall in GDP growth rate in Q3 is majorly attributed to the de-growth in the Manufacturing sector from 3.6 percent in Q2/FY23 to 1.21 percent in Q3/FY23. Similarly, the Services sector too slowed from 16.3 percent in Q1/FY23 to 9.4 percent in Q2/FY23 and 6.2 percent in Q3/FY23.
As per the data, the consumption growth for the the Q3/FY23 period was 2.1 percent, which is lower than 8.8 percent seen in the Q2/FY23. The capital formation growth also slipped to 8.3 percent in the third quarter, as against 9.7 percent in the second quarter of the current fiscal.
Despite of the fall in the growth rate in Q3 of FY23, the government is confident of clocking a growth rate of 7 percent in FY23.