Indian Economy Surprises with 6.1% Growth in Q4, Fiscal Year 2022-23 Ends at 7.2% Expansion

Indian Economy Surprises with 6.1% Growth in Q4, Fiscal Year 2022-23 Ends at 7.2% Expansion

India’s Economy Beats Expectations, Achieves 6.1% Growth in Q4; Fiscal Year 2022-23 Records 7.2% Expansion

In a remarkable turn of events, the Indian economy exceeded all projections by achieving a growth rate of 6.1% in the fourth quarter of the fiscal year 2022-23. The data released by the government on Wednesday showcased a significant improvement from the revised 4.5% growth witnessed in the previous quarter. This growth surge was primarily driven by a 5.5% expansion in the agriculture sector and a 4.5% growth in manufacturing. Furthermore, construction, services, and mining sectors also experienced impressive growth rates.

The economy’s performance throughout the fiscal year exhibited a growth rate of 6.1% during the March 2023 quarter, while the rates were recorded at 4.5% in October-December 2022 and 6.2% in July-September 2022. The initial quarter of April-June 2022 witnessed an outstanding growth rate of 13.1%. Although the high-frequency indicators indicated a positive momentum in April, with increased tax collections and a flourishing services sector, a decline in exports and imports posed some challenges. Nevertheless, apart from monsoon variations and geopolitical risks, the economy is expected to surpass the initial estimate of 6.5% for the current fiscal year (April 2023 to March 2024).

Several positive factors contribute to the stability of the economy, including a consistent current account deficit, rising foreign exchange reserves, and a decline in inflation to an 18-month low of 4.7%. However, risks such as below-normal monsoon, potential crop damage due to hot weather, and volatile global commodity prices that may fuel inflation should be considered. Economist Rumki Majumdar from Deloitte India commented on the pleasantly surprising yet somewhat expected GDP numbers.

The revival of the manufacturing sector is particularly noteworthy as it had been a concern for policymakers due to its modest recovery. Majumdar expressed enthusiasm about the strong growth in manufacturing and construction, highlighting their significance in attracting private investment in the upcoming quarters. With high levels of industry capacity utilization and increased government capital expenditure, private investments are expected to enter the market earlier than anticipated. Additionally, high-frequency data on credit disbursement and light diesel oil consumption indicate a rise in manufacturing activities for this fiscal year.

The Gross Value Added (GVA) growth for the fiscal year ending in March 2023 stood at 7%, compared to the previous year’s growth of 8.8%. Notably, the manufacturing sector witnessed accelerated GVA growth of 4.5% in the March 2023 quarter, in contrast to a meager 0.6% growth observed a year ago.

Agricon supports IRRI to perform On-Farm Trials with Chhattisgarh’s farmers

Agricon supports IRRI to perform On-Farm Trials with Chhattisgarh’s farmers

International Rice Research Institute (IRRI)South Asia Regional Centre, Varanasi collaborated with Chhattisgarh Agricon Samiti, to perform direct on-ground trials with farmers of 2 districts of Chhattisgarh, Raipur & Durg. Varieties developed by scientists and state agriculture universities were put on trial directly into farmer’s fields. Through this practical approach not only variety’s performance in the field was observed but also feedback from farmers group and their observation was given consideration.

Starting of Trials: Trials started in July 2021. These trials were conducted in 2 different modes: On-farm trials (OFT)and Varietal Cafeteria (VC). In OFT 7 paddy varieties provided by IRRI and a local popular variety of the area was distributed to farmers by team members of Chhattisgarh Agricon Samiti. These varieties were cultivated in farmers land, using farmer’s regular package of practices. Demonstration of VC was done with one farmer in Raipur in which 30 on-trial varieties were demonstrated. In varietal cafeteria farmers and other stakeholders like agriculture department, scientists, interact, learn, evaluate, and decide on their favourite varieties.

“Farmers training cum evaluation” was organised at the varietal cafeteria and other OFT sites. Field visit and feedback session was conducted during October 2021 in the presence of scientists of IRRI(Varanasi) Dr. Kuntal Das, Dr. Sarvesh Shukla, and Dr. Sanket Thakur of Chhattisgarh Agricon Samiti. Farmers shared their feedback and problems related to the varieties with the scientists.

In the varietal cafeteria, an evaluation training and feedback workshop was conducted before harvesting of the crop. 50 farmers participated in the event along with Mr. Gayaraam joint director agriculture, Raipur, dr. Sanket Thakur (agriculture scientists) Mr. Gajendra Chandrakar agricultural scientist from Indira Gandhi Agriculture University, Mr. R.K Kashyap Deputy Director Agriculture. The evaluation process involved aspects like the height of the crop, number of panicles, number of grains per panicle, and other agronomical observations along with ease of cultivation.

The workshop encouraged farmers to identify preferred characteristics in the paddy plant. Evidence-based trial and evaluation improved awareness about various new and improved varieties among farmers.

Training on “Quality Seed Production”
Training on “Quality Seed Production”

Quality Seed Production and inclusion of women

This trial of paddy varieties was formulated with an approach of “providing seeds to producing seeds”. After harvesting and evaluation by farmers, a farmer’s favourite variety was selected for seed production. The training was conducted on “Quality Seed Production of Rice” by Chhattisgarh Agricon Samiti.45-50 women participated in this training and learnt to produce quality seeds. These seeds will be used for OFT in Rabi season. These trials are now being carried out for rabi season with 45 farmers of Raipur and Durg.

Positive Outcomes:

Farmers were supported and motivated in the adaption of emerging and improved varieties of paddy along with aspiring them for quality seed production.

IRRI received performance analysis, farmers’ acceptance, and behavioural analysis from the trial which will support them for further research.