India's gross domestic product (GDP) increased by 6.1% in the final quarter of the previous fiscal year, exceeding analyst expectations. Furthermore, according to MOSPI data released on Wednesday, the Centre now estimates the overall growth rate for FY23 to be 7.2%.

The Reserve Bank of India (RBI) forecasted 5.1% real GDP growth in Q4FY23, while SBI Research forecasted 5.5% growth. According to a Reuters poll, the Indian economy is expected to grow by 5% year on year in the January-March quarter, owing to steady urban demand and government spending.

On an annual basis, the economy grew by 13.1%, 6.2%, and 4.5% in Q1, Q2, and Q3 of FY23, respectively.

In the March quarter, India's manufacturing sector output increased by 4.5% year on year, compared to a 1.1% contraction in the previous quarter, while farm output increased by 5.5% year on year, compared to a 3.7% increase in the same period.

According to preliminary estimates of Gross Value Added (GVA), the manufacturing sector grew by 1.3% in FY23 after growing by 11.1% in FY22, while agriculture, forestry, and fishing grew by 4% in FY23 after growing by 3.5% the previous fiscal year.

The median forecast from a poll of economists was based on the strong performance of services such as travel and retail, as well as the boost to demand provided by falling food prices and the global drop in oil prices. Trade, hotels, transportation, communication, and broadcasting-related services grew 14% in FY23 after growing 13.8% in FY22.