India's economy grew at a rate of 6.1% in the fourth quarter of 2022-23, beating expectations and helping to push the full-year growth rate to 7.2%. This makes India the fastest-growing major economy in the world.
The growth was driven by strong performance in the agriculture, manufacturing, and services sectors. Agriculture grew by 5.5%, manufacturing by 4.5%, and services by 8.4%.
The growth comes despite headwinds from the global economic slowdown and the war in Ukraine. However, high-frequency indicators suggest that the economy is still growing at a healthy pace.
For the current financial year, the government has forecast growth of 6.5%. However, some economists believe that the economy could grow even faster, given the strong momentum in the first quarter.
The strong growth is a positive sign for India, and it could help to boost job creation and incomes. It also gives the government more room to maneuver on fiscal and monetary policy.
However, there are some risks to the outlook, including the global economic slowdown, the war in Ukraine, and the monsoon. If these risks materialize, they could weigh on growth in the coming months.