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Below is Perspective on Q4 GDP FY23  By Mr. Vivek Rathi, Director Research, Knight Frank India.

“A 7.2% economic growth in FY23, indicates resilience in India’s economy despite multiple global headwinds during the year arising from economic and geo-political uncertainties. India’s economic growth was primarily driven by strong domestic macro-economic fundamentals. Private consumption expenditure which comprises 61% of weightage in the GDP estimates grew by 7.5%, higher than the pre-pandemic five-year average of 6.9%. Thus, indicating strong domestic demand despite consumer inflation being a key headwind averaging at 7% in FY23.

Domestic investments as well has indicated some strength, as seen in 9.6% growth in GCF. Growth in investments is crucial for a sustenance of long-term economic growth.

So far, the real estate sector has remained strong despite multiple headwinds arising from aggressive interest rate hikes and consumer inflation. This indicates the strong consumer preferences towards home ownership. Since real estate is a derived demand, a sustenance in the economic growth is beneficial to the sector.

Going forward, government initiatives such high allocation to infrastructure spending, and policies to promote domestic manufacturing such as PLIs should be supportive of India’s long term economic growth. “

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