Global Headwinds, High Inflation Impacted Q3 GDP Growth: PHDCCI

Despite global headwinds, high inflation and increased costs of funds, the gross domestic product (GDP) growth at 4.4 per cent is still encouraging, said Saket Dalmia, President, PHD Chamber of Commerce and Industry in a press statement. 

India’s GDP for the quarter ended 31 December 2022 grew at 4.4 per cent year-on-year (YoY), as per data released by the Ministry of Statistics on Tuesday. This is slightly lower than what economists had predicted in a poll last week.

A Reuters poll of economists had shown last week that India’s economy probably grew 4.6 per cent year-on-year in the December quarter. This was slower than the 6.3 per cent growth seen in the second quarter of the fiscal.

However, the industry needs a great hand-holding in such a difficult environment caused by global economic uncertainties and volatile inflationary conditions, said Dalmia.

It is inspiring to note that the agriculture sector has shown great resilience with consistent growth of more than 3 per cent over the last many years. 

"We need to focus more on the manufacturing sector as high costs of borrowings, and high prices of raw materials have impacted the price–cost margins of the producers," added Dalmia.

He also stated that reduced costs of doing business such as easier compliance and a robust Single Window System will enhance the ease of doing business in the country.

"Going ahead, we look forward to a strong recovery in the GDP Growth in the coming quarters and a more than 7 per cent GDP growth for the current financial year 2022 -23," mentioned Dalmia.