A day after the government data showed that India’s gross domestic product (GDP) grew at 7.8 per cent during the April-June quarter of the current fiscal year (Q1 FY24), global rating agency Moody’s on September 1, increased the GDP growth estimates for 2023 to 6.7 per cent from 5.5 earlier. However, the growth estimates for 2024 have been revised downward to 6.1 per cent from 6.5 per cent earlier.

Additionally, the CPI estimates for 2023 stand at 5.6 per cent while those for 2024 are pegged at 4.8 per cent.

On Thursday, official data showed that India’s GDP expanded by 7.8 per cent in the quarter that ended June, which was mostly in line with economists’ expectations. While the reading was better than a growth rate of 6.1 per cent in the January-March period, it was in stark contrast to an expansion of 13.1 per cent in the quarter ended June 2022.

The GDP reading for the June quarter was the best since April–June 2022, driven by double-digit growth in the country’s buoyant services sector, according to an official statement.

The government retained its GDP growth projection for the current financial year at 6.4 per cent. Chief Economic Adviser V Anantha Nageswaran said that the government does not expect inflation to become out of control. He also said the government expects further expansion in the construction sector in the coming years.