Economists estimate 6.5% GDP growth for Q2FY23

Most economists have estimated India’s real GDP growth for the second quarter of 2022-23 at 6.5 per cent, largely due to the normalisation of the base effect. According to them, robust demand for contact-intensive services, government capital spending as well as high pre-festive stocking of goods would help the economy report a growth in the September 2022 quarter. However, they opine that rising interest rates, high inflation, waning base effects would moderate headline growth from double-digit pace in the quarter before. India’s GDP grew by 13.5 per cent in the first quarter of 2022-23. While economists at ICRA, Acuite Ratings & Research and Bank of Baroda see GDP growth in the September 2022 quarter at around 6.5 per cent, India Ratings and Research expects second quarter GDP growth at 7.2 per cent.