India’s GDP: According to figures provided by the National Statistical Office (NSO) on Wednesday, India’s Gross Domestic Product (GDP) increased by 13.5% during the first quarter of the current fiscal year (April to June), compared to a growth of 20.1% during the same period previous year. Due to the base effect, many analysts predicted that the Indian economy would grow at a double-digit rate. ICRA, a ratings firm, predicted that the GDP will expand by 13% between April and June 2022, while the State Bank of India forecasted a growth rate of 15.7%.
The Reserve Bank of India (RBI) stated earlier this month that the GDP growth rate is probably going to be around 16.2% in the first quarter of this fiscal year. China’s economy grew by 0.4% between April and June 2022. According to Reuters, concerns about a global recession and increased borrowing rates are expected to slow down growth in the future. The RBI has pledged to do more to keep inflation below its target floor of 6% by raising the benchmark policy rate by 140 basis points in three rate hikes since May.
“We are seeing signs of waning of the intensity of tailwind generated by economic reopening,” Reuters quoted Kunal Kundu, an economist with Societe Generale GSC Pvt, as saying. “Add rising borrowing cost to benign domestic consumption prospects, and business investment could be potentially underwhelming,” Kundu said. According to figures, private investment rose by 20.1% from April through June of last year. Public spending increased by 1.3%, but private consumption increased by 25.9%.