Although if a number of economic indicators point to increased economic activity, the third quarter (October to December) of the current fiscal year may see a slowdown in the nation’s economic growth to less than 5%. Gross domestic product (GDP) growth was 5.4% in the third quarter of FY2022. For the September quarter of FY2023, the GDP growth rate was 6.3%. On Tuesday, the third quarter’s GDP numbers will be made public. On Tuesday, the National Statistical Office may also update the second advance estimate of the current fiscal year and the GDP data from the previous year. The yearly growth projection for FY20 may also be altered because the base year data for FY2022 has changed.

Often occurring indications demonstrate that the nation’s economy Agriculture and service sector will continue to thrive better than manufacturing, which is still struggling. Also, there may be a minor easing of the drag that net exports have on the home economy. In the September quarter, net exports fell by $50.3 billion, compared to a $35.5 billion decrease in the December quarter. The GDP growth in the December quarter may increase as a result. SBI Research reports that the net EBITDA of almost 3,000 non-financial enterprises in the December quarter decreased by 9% as compared to the same quarter the previous year. Whereas the previous year at this period it had climbed by 18 percent.

Reserve Bank of India During the December quarter, the (RBI) poll of 41 experts earlier this month predicted GDP growth in the range of 4 to 6.9%. The study suggests that GDP growth maybe 4.6% on average. Yet, the RBI’s assessment projects a GDP growth rate of 4.4%. According to analysts, the GDP figures for the fiscal years FY20, FY21, and FY22 would likely be amended on Tuesday. The numbers for the first and second quarters of the current fiscal year, as well as the first and fourth quarters of these previous years, will also alter. And it said, “There is a modest fall in manufacturing in Q3 of FY23 due to weakening foreign demand and reduced domestic demand for consumer durables compared to pre-Covid.” Yet over the holiday season, there has been an uptick in demand for cars and other goods. The rebound in tractor and two-wheeler sales indicates that rural demand is expected to continue robust. Urban consumption is predicted to increase due to the realization of postponed demand as well as a spike in discretionary expenditure. The widespread issuing of e-way bills will further support the service industry as demand for air passengers and rail freight rises.