The Indian economy grew 6.1% in the January-March quarter (Q4) for FY22 to Rs 43.6 lakh crore, with the growth rate for 2022-23 to 7.2%, or Rs 160.06 lakh crore, a mark higher than the Reserve Bank of India (RBI) and private projections.

Asia’s third-largest economy relics the fastest-growing major economy for the second year after clocking 9.1% in 2021-22.

Particularly, a stable existing account deficit, increasing foreign exchange reserves, and inflation coming to an 18-month low of 4.7% are positives for the economy. However, a normal monsoon is affecting agriculture and volatile global commodity prices amid geopolitical fears fuelling inflation pose.

The unexpected surge in the GDP statistics is amid the positive performance in Q4FY22 and improved by services, exports, and agriculture. The latest print supports RBI governor Shaktikanta Das who said the 2022-23 GDP could be higher than the expected 7%.

Prime Minister Narendra Modi tweeted that the 2022-23 GDP growth figures underline the resilience of the Indian economy amidst global encounters. This vigorous performance, optimism, and compelling macroeconomic indicators exemplify our economy’s promising trajectory and our people’s stubbornness.

Deloitte India economist Rumki Majumdar said GDP were surprising but not wholly unexpected as the trade rebound is the cherry on top since the modest recovery concerned the policymakers.

JPMorgan mentioned that the FY24 growth estimate to 5.5% from 5%, and the global growth momentum is still expected to slow in coming years.

Citi said that the FY24 real GDP forecast increased to 6.2% from 5.9%, whereas CLSA estimated 5.1% GDP growth, but 6.1% surprised them too.