New Delhi: The lower-than-expected economic growth in the April-June quarter of the 2022-23 fiscal in comparison to the corresponding period of 2021-22 is the most striking point addressed by the editorials of most English dailies on Thursday, September 1. A few other newspapers, however, highlighted that the economy grew fastest in the last four quarters, or a year.

The GDP (gross domestic product) numbers were released by the National Statistical Office, which is under the Union ministry of statistics and programme implementation.

Business Standard, in its front page report titled 'Q1 GDP growth misses estimates' highlighted that the economy grew at 13.5% in the first quarter of FY 23 despite the low base of an equivalent period of the last financial year.

In its editorial headlined 'Disappointing Numbers', the business daily stressed that the GDP numbers pose hard questions: a low growth momentum in the economy coupled with global headwinds like tighter interest rate conditions and geopolitical tensions.

The Reserve Bank of India (RBI) had projected a growth of 16.2% in the first quarter of FY23. However, the data indicates that "growth momentum in the economy is significantly lower than believed. This presents a worrying prospect for investors and the government."

Additionally, the core sector data for July showed a modest growth rate of 4.5%. In fact, it decelerated to a six-month low year on year in July as compared to the double-digit growth in June. "These substantiate concern about the growth momentum in the economy," it added.

In its front page report and quick edit titled 'The GDP mirage', Mint said that the 13.5% GDP growth in Q1 FY23 is the strongest reading in a year, and a double-digit expansion is celebration-worthy in any economy. But, like other editorials, it stressed the same point that "it wasn’t enough to make up for the 24%-plus contraction of 220-21."

However, Mint's front page story, Revival, Low Base Fuel 13.5% Q1 GDP Growth, also focussed on the revival in consumption growth besides the low base effect that fuelled the fastest economic growth in a year.

In its front page report, Hindustan Times raised concerns over the economy’s growth prospects this fiscal with respect to the lower-than-expected GDP numbers.

It cited finance secretary T.V. Somanathan as saying that "the Indian economy is still on course for 7-7.5% growth [FY23 forecast] on the back of robust capital expenditure and private consumption." He also pointed to rising private investment and private consumption.

However, the daily spoke with experts who believed that unless fiscal policy takes a more proactive role in supporting mass demand and smaller enterprises, the full-year growth forecast may be challenging.

Also read: Will the Indian Growth Narrative Hold Steady in the Coming Quarters? 

The national daily quoted Himanshu, an associate professor of economics at Jawaharlal Nehru University, as saying: “The latest GDP numbers clearly show that the economy is getting entrenched in the pattern of K-shaped recovery where the rich are driving growth and the poor struggle to achieve even subsistence levels. High inflation especially for prices of essentials has only made matters worse. There is every reason to believe that these numbers will be revised downwards..."

Further, in its editorial titled 'GDP number is disappointing,' HT said, "Absent context, the number is high and the fastest pace of growth in four quarters; but factor in the base-effect (the first quarter of last year saw India being roiled by the Delta variant of the coronavirus), and estimates — including the Reserve Bank of India 16.2% — and it is evident that something didn’t really go to script."

"Still worse, the buoyant 4.5% growth that agriculture showed in the quarter seems removed from the reality of lower output on account of an unseasonally warm March, and it is likely the number could be revised down the line."

It stressed that India needs a fiscal push, especially because of the RBI's tightening monetary policy to combat inflation. It added that the economy will continue to expand – perhaps not as rapidly as previously expected, but still at a significant rate.

The GDP numbers show that the economy is over the COVID-19 shock, The Times of India said in its editorial. However, it added that "good news in the first quarter won’t help with challenges going forward."

The TOI editorial, titled 'Almost Like 2019: Bar Low-Skill Service Sector, Economy’s Over the Covid Shock. But Headwinds Are Coming' focussed on the positive developments as well. It said, "GDP in the April-June quarter is above the corresponding pre-pandemic period, indicating the economy has recovered at an aggregate level from the Covid shock. Further indications of this come from the data that both private consumption and investment have surpassed their pre-pandemic levels."

Also read: How the Rise of Global Inflation Will Play Out in Indian Politics

It further highlighted that the growth in contact-intensive sectors represented by trade, hotels and transport was below the pre-pandemic levels. "It’s a troubling feature of the recovery as contact-intensive sectors are an important source of employment among job seekers lacking in skills. The key question is whether the job situation is changing," the newspaper said.

The Free Press Journal, in contrast to all other newspapers, carried an editorial by R.N. Bhaskar titled 'Rural markets will decide India's revival.' It stressed the need for an increase in rural purchasing power to revive the economy.

Highlighting the increasing number of farmer suicides, it said, "If the government actually wants to improve farm welfare and revive the economy, it must begin with improving rural purchasing power first."

The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.