India’s Economic Performance Review for April 2023

The economic growth dynamics in India continue to show mixed signs during April 2023, the first month of the fiscal year FY2023-24. Consumption spending was sustained at the rural as well as the urban level, and other demand-driving indicators, such as lower trade and private investment, weighed on growth due to the continued gloominess in global economic conditions. Manufacturing and services activities picked up substantially in April 2023, generating higher than expected domestic sales, GST revenues, and rail freight volume, but the unemployment rate continued to remain high at around 8% owing to the incremental labor participation rate. While the Indian economy has shown reasonable resilience, the impact of the global slowdown and geopolitical challenges is evidently continuing, as exports and imports activities slowed down during the month.