top of page
  • Raghav Sand

Indian Economy February 2023

The world economy is at a crucial juncture. All that money which made its way in the system after governments had to spend freely in the aftermath of the pandemic has resulted in hyperinflation. Some of that money also made its way to start-ups and ESG funding. The arrogance and greed of bankers is not a new phenomenon, but every successive bank failure eclipses the previous one. In the name of free market and capitalism, the average person has always suffered the consequences of reckless corporate and reactive executive actions.

The Indian economy is doing far better than most other big economies, but this fact may not hold true for a long time. Global growth rates are falling sharply, and this is adversely affecting India’s services and merchandise exports. On the other hand, Indian businesses and consumers are importing more as compared to previous years.

In the following paragraphs, let us try to understand the state of the Indian economy with help from data released by government agencies, industry associations, and financial analytics firms.

Goods and Services Tax

The gross GST revenue collected in the month of February 2023 was 1,49,577 crore. The revenues for the month of February 2023 are 12 percent higher than the GST revenues in the same month last year, which was 1,33,026 crore. During the month, revenues from import of goods were 6 percent higher and the revenues from domestic transactions (including import of services) were 15 percent higher than the revenues from these sources during the same month last year. February 2023 witnessed the highest cess collection of 11,931 crore since implementation of GST.

GST Collection India February 2023

Auto Sales

Although February 2023 continued to have double digit growth of 16% year over year (YoY), it was nonetheless down by -8% from February 2020. The number of 2-wheelers, 3-wheelers, passenger cars, tractors, and commercial vehicles increased by 15%, 81%, 11%, 14%, and 17%, respectively, on a YoY basis.

India Auto Sales February 2023

The 2-Wheeler category saw a 15% YoY rise. The season of weddings and the new on-board diagnostics (OBD) regulations, which go into force in April, kept the sales going.

Manufacturing and Services

India's manufacturing sector continued to experience strong increase in output and new orders, despite a noticeable slowdown in the rate of development in international sales. The manufacturing output rose for the twentieth time in a row, according to data from February. The Indian service industry made progress in February, with output growing at the fastest rate in 12 years, and new business intakes improving at the joint-best rate during the same time span.

According to the data, new business growth was mostly driven by the home market, as new orders from abroad barely grew. The current 11-month expansion period has seen the weakest increase in overseas sales.

International Trade

India’s exports (merchandise and services combined) in February 2023 are estimated to be $63.02 billion, exhibiting a positive growth of 7.81 percent over the same period last year. On the other hand, imports in February 2023 are estimated to be $65.85 billion, exhibiting a negative growth of (-) 4.38 per cent over the same period last year. Overall exports in April-February 2022-23 are estimated to be $702.88 billion, exhibiting a positive growth of 16.18 percent over the same period last year. Overall imports in April-February 2022-23 are estimated to be $817.46 billion, exhibiting a positive growth of 19.93 percent over the same period last year.


Retail inflation has stayed out of the comfort zone, of both the consumers and policymakers, for way too long now. The monthly headline consumer price index (CPI) data is released by the National Statistics Office (NSO) of the Ministry of Statistics and Programme Implementation (MoSPI). The CPI for February 2023 was 6.44 percent, while the food inflation stood at 5.95 percent. Both these figures are marginally lower as compared to January 2023.

Inflation India February 2023

Prices of cereals and related products rose by over 16.73 percent as compared to similar period last year, while lower vegetable prices brought some relief to household budgets. Spices and fuel registered double-digit increase in prices at 20.20 and 10.86 percent, respectively. In a hyper-connected world financial system, the shocks caused by the banking sector and policy measures are being felt across the world.

Engage and Not Enrage

Much of India’s growth story in the last couple of years has been due to proactive policy measures and sustained domestic consumption. Government has laid down ambitious plans for infrastructure development and the nation has started to reap its dividend. A slowdown in exports and steep increase in imports is not a good sign. We live in an increasingly uncertain world, where geo-political developments define the course for economic development. At a time when we need to work as one to repair the damage caused by the events of the past three years, there is a need to engage and not enrage.

bottom of page