India’s economy grows at fastest pace in a year in June quarter
2023.08.31 08:55
© Reuters. FILE PHOTO: An employee works inside an engineering goods export unit in the manufacturing hub of Faridabad on the outskirts of New Delhi, India, January 13, 2023. REUTERS/Manoj Kumar/File Photo
By Shivangi Acharya and Nikunj Ohri
NEW DELHI (Reuters) -India’s economy grew at its fastest pace in a year in the June quarter, supported by strong services activity and robust demand, data released by the government showed on Thursday.
Gross domestic product expanded 7.8% on an annual basis in the April to June quarter, accelerating from the 6.1% growth recorded in the March quarter and topping a 7.7% forecast in a Reuters poll.
It was also the highest reading since the equivalent period of 2022, when growth stood at 13.1%.
India remains one of the fastest growing major economies, especially as China’s post pandemic recovery has slowed.
The manufacturing sector expanded 4.7% year on year in the June quarter, compared with 4.5% in the previous three months.
Private consumption, which accounts for nearly 60% of the economy, grew about 6% year on year, up from 2.8% in the previous quarter.
However, growth in capital formation, an indicator of investment, eased to about 8% year on year from 8.9% in the previous three months.
Services sector growth was helped by brisk activity in financial services, trade, hotels and transport sectors.
