GDP

The current account balance recorded a deficit of $36.4 billion (4.4 per cent of GDP) in the second quarter, up from $18.2 billion (2.2 per cent of GDP) in the first. Underlying the current account deficit in the second quarter was the widening of the merchandise trade deficit to $83.5 billion from $63 billion in the first quarter of 2022-23.

Now the scenario is quite different. Even with two or three members, a nuclear family is finding it difficult to control expenses when it comes to spending on necessary items like edible oil, pulses, milk, petroleum, etc.

In a report, Acuite said India's annualised GDP growth in Q2 FY23 expectedly, expanded at a slower pace of 6.3 per cent year-on-year (YoY) as against 13.5 per cent in Q1 FY23, the latter led by the easing of favourable base impact created by the second Covid wave in the previous year.

While buoyant, it would still leave output about 7 per cent below its pre-pandemic potential trend, reflective of impact of the pandemic and adverse terms of trade shock from higher commodity prices in 2022. Growth is expected to slow in 2023-24, on the back of a sharp global slowdown, which is weighing on exports, and the progressive fiscal and monetary policy normalization at home, JP Morgan said.

Speaking at CII's Global Economic Policy Summit 2022, Kotak said that India is the fifth largest economy in the world and can rise further upwards. However, it's growth would depend on economic performance in terms of absolute GDP and absolute per capita income and doing well on current account and fiscal management, he said.

In the last one year, the rupee has depreciated by around 10 per cent and though it may sound like a huge figure, compared to other emerging economies, India has not done badly, said Sharma on the occasion of the release of World Bank's India Development Update, which upgraded GDP growth to 6.9 per cent from the earlier 6.5 per cent.

In a research report S&P Global Ratings said India's forecast has been lowered by 0.5 percentage points for the next two fiscal years on slower global demand. Regional growth remains healthy overall. Meanwhile at global level, S&P Global Ratings said, global activity has held up surprisingly well so far despite a torrid pace of policy rate hikes and consistently high geopolitical uncertainties.

Commenting on price rise, the CEA said that retail inflation may have peaked and is likely to ease in the coming months. "Real GDP growth at 6.3 per cent in the second quarter of the current fiscal is in line with expectations. The Indian economy has continued on the recovery path from the pandemic. It is growing despite global monetary tightening," Nageswaran said.

Ishaq Dar, Finance Minister of the country, who replaced Miftah Ismail a month ago has had little impact on the situation. Local newspaper Dawn in its report said that forex reserves held by the country's central bank were close to nil. Of the total amount, $2.3 billion has been credited by China, $3 billion was deposited by Saudi Arabia and $1.2 billion came from the International Monetary Fund (IMF).

Following the stagnation of the first quarter of 2022 (Q1), the GDP recovered by 0.5 per cent in the second quarter (Q2), Xinhua news agency reported citing the Institute as saying on Friday. According to INSEE, the country's final domestic demand contributed positively to GDP growth in Q3 by 0.4 points, while net foreign trade contributed negatively by 0.5 points. "Imports were more sustained than in the second quarter, in particular for goods, while exports continued to slow down due to the decline in services exports," it explained.