India's GDP grew 13.5% in June quarter of FY23 — details here

Union Finance Secretary TV Somanathan said the figures were in line with th government's expectations.

“We remain on course to achieve 7-7.5% percent growth in FY23 . Today’s figure is in no way throwing us off that growth estimate — 13.5 percent is consistent with the 7% plus growth for FY23," he said, adding, "We have some large revenue contingencies like food and fertiliser subsidies that will come. We are on course to achieve the fiscal deficit target this FY ; have managed to curtail some revenue expenditure."

Gross Value Added was recorded at 12.7 percent in this period, versus 18.1 percent year-on-year and up from 3.9 percent quarter-on quarter. The agriculture sector grew at 4.5 percent, more than a CNBC-TV18 poll estimate of 3.1 percent. This was an increase over the 2.2 percent recorded last year and 4.1 percent in the March quarter.

Rating agency ICRA came the closest with its prediction of a 13 percent growth. In its report, ICRA said India's GDP growth is likely to be driven by the services sector, followed by the industry.

Kaushik Das, Chief Economist, Deutsche Bank, told CNBC-TV18 growth will be 6 percent from here on. "This isn't that disappointing from January-February. More important are Y-o-Y numbers and the base effect. There has been a sequential rise in growth momentum due to pent-up demand," he said.

Anubhuti Sahay, Head, South Asia Economic Research (India), Standard Chartered Bank, told CNBC-TV18 the numbers were lower than their expectation of 14 percent.

"Growth was coming pretty low, and the good part was public administration. Informal sector activity picking up is good news. Disappointed with trade sector growth, we are not sure we are back to the pre-pandemic level with 26 percent," Sahay said.

The Reserve Bank of India (RBI) has predicted the GDP growth rate to touch 16.2 percent in the first quarter of FY23, but many analysts have said it would likely come in between 12 percent and 16 percent.