Sandeep DikshitNew Delhi, August 31The Indian economy grew by 13.5 per cent in the first quarter of the current fiscal, mainly due to the base effect. India remained the fastest-growing major economy as China registered a growth of 0.4 per cent in the April-June quarter.The latest Q1 gross domestic product (GDP) growth figures come with several redeeming features crucial to fuelling further growth. Gross fixed capital formation, an important process that accelerates economic growth, rose to 34.7 per cent from 32.8 per cent, the highest in 10 years.Pvt consumption witnesses revivalThe high GDP growth fuelled by the rise in consumptionSignals the revival of domestic demand, particularly in the services sectorPent-up demand driving consumption post Covid, people stepping out and spendingThe services sector a strong bounce back, expected to get more boost in festival seasonCore sector output slides to 6-mth lowOutput of 8 core infrastructure sectors contracted to six-month low of 4.5% in JulyStood at 9.9% in the year-ago period while it expanded by 13.2% in June and 19.3% in May this yearOn the other hand, private final consumption expenditure, another major driver of economic growth and accounting for 60 per cent of India’s GDP, also rose to 59.9 per cent from 54 per cent in Q1 of 2021-22. The gross value added (GVA) grew by 12.7 per cent to Rs 34.41 lakh crore in the April-June period this year.Signs of buoyancy,7% growth in fy23Economy to grow at over 7% in current fiscal and GDP is 4% above the pre-pandemic levels. —TV Somanathan, Finance SecretaryIn signs of buoyancy, GST collection for August to be Rs 1.42-1.43 lakh cr. —Ajay Seth, Economic Affairs SecretaryReal GDP growth Q1 2022-23: Rs 36.85 lakh croreQ1 2021-22: Rs 32.46 lakh croreQ1 2020-21:Rs 27.03 lakh croreA drag in the form of government final consumption expenditure (GFCE) went down to 11.2 per cent as against 12.6 per cent in the Q1 of last fiscal. Fiscal deficit narrowed to 20.5 per cent of the annual target in Q1 compared to 21.3 per cent in the same period last year. “This will help the government meet fiscal deficit target of 6.4 per cent of the GDP,” said Finance Secretary TV Somanathan.The GDP had expanded by 20.1 per cent in the corresponding April-June period of 2021-22, according to data released by the National Statistical Office (NSO). It had contracted by 23.8 per cent in Q1 of 2020-21. The 13.5 per cent estimate is lower than the 16.2 per cent projected by the RBI, but close to rating agency ICRA’s estimate of 13 per cent.The nominal GDP or GDP at current prices in Q1 2022-23 is estimated at Rs 64.95 lakh crore against Rs 51.27 lakh crore in Q1 2021-22, a growth of 26.7 per cent compared to 32.4 per cent a year ago. The real GDP in Q1 of 2022-23 is estimated at Rs 36.85 lakh crore. It was Rs 32.46 lakh crore in Q1 of 2021-22 and a mere Rs 27.03 lakh crore in Q1 of 2020-21 due to a nationwide lockdown.The GVA in the farm sector was a healthier 4.5 per cent as against 2.2 per cent a year ago. But the GVA growth in manufacturing fell 4.8 per cent as against a rise of 49 per cent during the year-ago period. The GVA growth in mining was 6.5 per cent compared to 18 per cent earlier. In construction sector, it fell to 16.8 per cent from 71.3 per cent. The electricity, gas, water supply and other utility services segment grew by 14.7 per cent in the quarter compared to 13.8 per cent a year ago.In the services sector, it was 25.7 per cent against 34.3 per cent last year. Financial, real estate and professional services grew by 9.2 per cent over 2.3 per cent earlier. Public administration, defence and other services posted 26.3 per cent growth against 6.2 per cent in the first quarter last fiscal.