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Below Perspective on Q4 FY23 GDP Data By Ms. Madhavi Arora, Lead Economist, Emkay Global Financial Services

“The better than expected GDP print for 4QFY23 is helped by healthier capital formation and more importantly, net exports which appears to be not-a-drag on growth, as usually seen in the cost given India is a net importer. However, weaker private consumption is still a worry albeit looks a bit difficult to fathom, when one compares robust value added growth of consumption sectors like trade, Hotels, Transport, Communication services. Another anomaly was a big discrepancy print in Q4GDP along with the big gap between GDP and GVA growth, with GVA growth outdoing GDP with a  wide margin, depicting net indirect taxes (adjusted for subsidies) de-grew. That said, overall a healthy growth print augurs well and also validates the fact that India’s growth momentum is sustained well in FY23.”.

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