AIndia, the third largest economy in the world, recorded a growth of 13.5 percent in the June quarter. China, which is in first place, is 0.4 percent. Although the Reserve Bank’s expectation of 16.2 percent did not materialize, the new GDP figures are proof that India has managed to position itself at the forefront of the fastest growing economies.
The consumption power of the people is considered as a popular way of determining the gross domestic product of the country. Advances in manufacturing and service sectors are reflected in this consumption capacity. GDP can also be said to be a summary of investment, government spending and exports more than imports.
A gradual increase in the consumption capacity of the people after covid is evident. Two-wheeler sales in the June quarter were significantly higher than the same period in 2021 and 2020. Meanwhile, from 2015 to 2019, it can be seen that it is less when compared to the figure of June quarter.
Sales of fast-selling consumer goods are still not up to expectations, according to data released by Nielsen. In the quarter ended June 30, sales of FMCG products contracted by 0.7 percent. It is clear from this that the sales of products of companies like Hindustan Unilever, Britannia, ITC and Nestlé are less than before.
It should be understood from this that there has not been sufficient growth in consumption in rural areas. This is evidenced by the 20 percent increase in demand for the employment guarantee scheme compared to 2019.
Apart from this, there is a difference between import and export. The import value for the June quarter was Rs 11.43 lakh crore. Exports on the other hand reached 8.45 crore rupees. That means the net export figure is minus 2.98 lakh crores. This is the highest deficit ever. It can be seen that the decrease in exports has brought the GDP lower than the predicted level. The increase in import costs is due to higher prices of crude oil and other products.
Although it did not meet the expectations, it can be judged that the country has improved compared to the global growth. There is a gradual increase in the consumption of fast selling products. This is evident in two-wheeler sales as well. Once Russia’s invasion of Ukraine ends, the situation will change.
Content Highlights: India overtakes China: let’s evaluate the signal given by the GDP figures
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