India’s construction sector recorded a growth of 16.8 percent year on year in the first quarter (April-June) of the fiscal year 2022-23, according to data released by the ministry of program implementation and statistics on Thursday, September 1.
According to analysts, the high growth could be attributed to government spending on infrastructure projects, which offset the impact of the Reserve Bank of India (RBI) tightening interest rates to tame inflation and increasing key policy interest rates by 140 basis points during the period.
Meanwhile, according to macro data published by the government, India’s gross domestic product (GDP) growth during the first quarter was recorded at 13.5 percent, lower than the 16.2 percent estimated by the RBI.
The RBI has forecast GDP growth of 7.2 percent for the fiscal year 2022-23.