New Delhi: India's economy surged by 8.4% in the quarter ending in December, surpassing expectations, driven by strong expansion in manufacturing and construction sectors.
Various reports had cited analysts' polls to suggest that India’s GDP will slow down to nearly 6.5%, the lowest in the first three quarters of FY24.
According to the second advance forecast by the National Statistical Office (NSO), India is expected to achieve a growth rate of 7.6% for the fiscal year 2024, positioning it as one of the globe's fastest-growing economies.
The growth in the economy in the third quarter marks a significant increase from the 4.4% growth recorded in the same period of the previous fiscal year, FY23.
Prime Minister Narendra Modi said the robust 8.4% GDP growth in Q3 2023-24 shows the strength of the Indian economy and its potential.
"Our efforts will continue to bring fast economic growth which shall help 140 crore Indians lead a better life and create a Viksit Bharat!"
Robust 8.4% GDP growth in Q3 2023-24 shows the strength of Indian economy and its potential. Our efforts will continue to bring fast economic growth which shall help 140 crore Indians lead a better life and create a Viksit Bharat!
— Narendra Modi (@narendramodi) February 29, 2024
Chief Economic Advisor Venkatramanan Anantha Nageswaran said comparing India's GDP vs the world "that the economy continued to defy expectations underscores the structural transformation. So there is a case for global agencies to make an upward adjustment to their estimate of India's potential growth," reported Moneycontrol.
"High-frequency indicators point toward continued good performance in Q4 FY24 too. That is a good sign for the growth momentum," he added.
Bandhan Bank Chief Economist and Head of Research Siddhartha Sanyal remarked that if CSO’s real GDP growth forecast of 7.6% for 2023-24 comes true, will be the highest growth print in seven years, barring 2021-22, which had shot up due to the statistical effects of a markedly favourable post-Covid base.
"The upside surprise in GDP growth number continues to be sizeable. Importantly, high frequency growth indicators continue to stay robust, suggesting strong growth prints during 2024-25 as well. Strong growth coupled with projections of softening in inflation prints in the coming quarters offer meaningful cushion for policy makers. While we continue to expect that rate cuts are unlikely at least in the next couple of MPC meetings, a key aspect to watch remains RBI’s communication and action on the liquidity front," he said.
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