India's manufacturing growth rebounds in Q1 2023 post shrinkages: BCG

04 Jul '23

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Insights

India's real GDP grew by 6.1 per cent year on year in 2023 first quarter, with manufacturing growth rebounding after contracting in the previous two quarters, BCG said.
Select high-frequency indicators improved on the back of buoyant demand, at varying growth rates, in May.
Merchandise trade deficit rose to a five-month high in May, with tepid export growth.

India’s real gross domestic product (GDP) grew by 6.1 per cent year on year (YoY) in the first quarter (Q1) this year, with manufacturing growth rebounding after contracting in the previous two quarters, according to the Boston Consulting Group (BCG).

Select high-frequency indicators improved on the back of buoyant demand, at varying growth rates, in May this year, BCG said in its ‘India Economic Monitor’ for June.

The index of industrial production (IIP) declined in April after improving in the previous month, partly due to weaker monthly performance of manufacturing. The purchasing managers’ index (PMI) for manufacturing reached its highest value in May this year since October 2020.

Trend and investment indicators indicated mixed trends. Merchandise trade deficit rose to a five-month high in May, with tepid export growth. Foreign direct investment surged in April, but remained below April 2022 levels.

Analysts’ forecasts indicate a GDP growth of 5.5-6.5 per cent YoY for fiscal 2023-24, BSC added.

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