GDP blitz at 7.6% lays ground for FY24 show
NEW DELHI : The Indian economy shot past expectations to clock an impressive 7.6% growth in the September quarter, retaining its crown as the world’s fastest-growing major economy. That’s a major step-up from 6.3% in the corresponding period of the previous fiscal year. While manufacturing, mining and construction put up a robust show, agriculture cooled thanks to an erratic monsoon, National Statistical Office (NSO) data showed.
The quarter saw double-digit growth in fixed investments and government spending, while household consumption rose marginally. A Mint poll of 18 economists had estimated the gross domestic product (GDP) growth to be about 6.8% in the quarter. The Indian economy expanded at 7.8% in the first quarter of the current fiscal year.
The Reserve Bank of India’s (RBI) forecast for 2023-24 is 6.5%, while others like investment bank Goldman Sachs see a more sedate 6.2% growth. Separately, the output data for eight core sector industries showed an increase of 12.1% in October against the previous year’s 0.7%, setting the stage for continued momentum in the December quarter as well. With the 7.6% GDP growth in real terms in the September quarter, India is now comfortably set to achieve 6.5% growth in the current fiscal, chief economic advisor Anantha Nageswaran said.
“We are more comfortable with 6.5% growth forecast for FY24 now," Nageswaran said at a briefing after the second quarter GDP figures were released by the statistics ministry. India’s growth figures come at a time when major global economies are facing slowing growth and steep interest rates. The International Monetary Fund (IMF) has predicted that the Indian economy will outperform Indonesia (4.93%), China (4.9%), the US (2.93%), Japan (1.2%),
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