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BIG STORY SEPTEMBER 02, 2022 | The Indian Eye 4

RETURN OF GROWTH

POSITIVE SIGNS?

India’s growth surged to 13.5 per cent in the first quarter of the current financial year. But
manufacturing and inflation remain a challenge. Can the Reserve Bank of India balance

growth and inflation as the Indian currency continues to depreciate?

OUR BUREAU at 56.2 in August -- signaling the sec-
ond-strongest improvement in oper-
New Delhi
ating conditions since last November.
n a positive news this week it was The indices vary between 0 and
reported that India’s gross do- 100, with a reading above 50 indicat-
Imestic product (GDP) growth ing an overall increase compared to
surged to 13.5 per cent in the first the previous month, and below 50 an
quarter of the current financial year overall decrease.
as compared to 4.1 per cent in the “The rate of input cost inflation
previous quarter. softened to the weakest in a year, but
According to the official data the passing of higher freight, labor
released on Wednesday, this is the and material prices to clients kept
sharpest growth in the Indian econ- the pace of increase in output prices
omy in a year. India’s real GDP or little-changed from July,” it said.
Gross Domestic Product (GDP) Also, the degree of optimism
at Constant (2011-12) prices in Q1 which was at its highest in six years
2022-23 is estimated to attain a level and predictions of stronger sales,
of Rs 36.85 lakh crore, as against Rs new enquiries and marketing efforts
32.46 lakh crore in Q1 2021-22, show- all boosted confidence in August, it
ing a growth of 13.5 per cent as com- added. “Indian manufacturers con-
pared to 20.1 percent in Q1 2021-22, tinued to benefit from the absence
as per the data released by the Na- of COVID-19 restrictions, with rates
tional Statistical Office (NSO), Min- of growth for both output and new
istry of Statistics and Programme Im- orders picking up yet again to the
plementation. strongest since last November,” said
Pollyanna De Lima, Economics As-
The nominal GDP or GDP at sociate Director at S&P Global Mar-
ket Intelligence.
Current Prices in Q1 2022-23 “Firms welcomed the weaker in-
is estimated at Rs 64.95 lakh Prime Minister Narendra Modi inaugurates the first indigenous aircraft carrier crease in input costs with an upward
revision to output forecasts amid
crore, as against Rs 51.27 ‘INS Vikrant’ in Kochi on Friday (ANI/ PIB) renewed hopes that contained price

lakh crore in Q1 2021-22, pressures will help boost demand.
Coal, Refinery Products, Fertilizers, demand boosted new orders for In- Inflation concerns, which had damp-
showing a growth of 26.7 per Steel, Electricity and Cement indus- dian manufacturers during August, ened sentiment around mid-year, ap-
cent as compared to 32.4 per tries increased in July 2022 over the which pushed manufacturing out- pear to have completely dissipated in
put growth to a nine-month high, a
corresponding period of last year.
August as seen by a jump in business
cent in Q1 2021-22. The index of core industries monthly survey showed. confidence to a six-year high,” Polly-
measures combined and individual “Production volumes were also anna De Lima added.
But in a negative sign, the output performance of production in se- supported by a pick-up in exports Though the Q1 growth was low-
of eight core infrastructure sectors lected eight core industries viz. Coal, and upbeat projections for the year- er than the Reserve Bank of India’s
slowed to 4.5 per cent in July as com- Crude Oil, Natural Gas, Refinery ahead outlook. Firms were at their estimate of 16.2 per cent for the first
pared to 9.9 per cent recorded in the Products, Fertilizers, Steel, Cement most optimistic for six years,” S&P quarter of 2022-23, it was the sharp-
same month last year, as per the gov- and Electricity. Global India Manufacturing said est growth in the Indian economy in
ernment data released on Wednes- The Eight Core Industries com- on Thursday. Indian manufacturers a year. India’s real GDP or Gross
day. The combined Index of Eight prise 40.27 per cent of the weight of reported the fastest increase in pro- Domestic Product (GDP) with 2011-
Core Industries increased by 4.5 per items included in the Index of Indus- duction in nine months, which they 12 as the base is estimated to attain a
cent (provisional) as compared to the trial Production (IIP). attributed to greater sales, and recent level of Rs 36.85 lakh crore, as against
Index of July 2021, according to data There are some worrying signs efforts to enhance capacities. Rs 32.46 lakh crore in the same quar-
released by the Ministry of Com- for the Indian economy. The seasonally adjusted index ter of 2021-22.
merce & Industry. The production of But a sustained improvement in was marginally lower from July’s 56.4 Continued at next page... >>

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