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Apoorva Devanshi
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According to GDP figures provided by MOSPI on Thursday, February 29. The Indian economy grew at 8.4% during the October–December quarter of the current financial year 2023–24 (Q3FY24). It continues to be the fastest-growing major economy in the world. Strong expansion in the manufacturing and construction sectors, as well as strong domestic demand, contributed to this increase in GDP.
Data released by NSO reveals that the Indian economy grew at a much faster rate than expected. It grew at 8.4% in Q3 of FY 2023-24. This is much higher than the earlier 8.1% in the previous quarter i.e., in 2022-23.
According to NSO, GDP is predicted to have grown by 8.4% to ₹43.72 lakh crore in Q3 of 2023–24 at constant (2011–12) prices, up from ₹40.35 lakh crore in Q3 of 2022–23. The GDP at current prices is said to have grown by 10.1% in Q3 of 2023–24 to ₹75.49 lakh crore from ₹68.58 lakh crore in Q3 of 2022–23.
Pc: TOI
The overall growth in GDP is influenced by the growth of particular sectors, e.g. manufacturing, service and construction sector.
The construction sector witnessed a double digit growth in the financial year of 2024. This is driven by strong demand for housing and government’s infrastructural boost.
According to Chief Economic Advisor, Nageswaran, “The economy continues 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.”
Nish Bhatt, Founder & CEO, Millwood Kane International highlighted that at 8.4 per cent YoY, this is the strongest growth since the second quarter of 2022. “In the coming years, India is expected to maintain its position as one of the world’s fastest growing economies, exceeding any comparable emerging market country. However, due to the impact of food price inflation, geopolitical and Red Sea crises, we may see some short term moderation.”
Thamashi De Silva, Assistant India Economist, London stated, “Any slowdown in growth will be mild, especially since the government’s infrastructure drive is likely to stimulate activities.” This will limit any immediate need for a reduction in interest rates. “We think the Reserve Bank of India will be starting to ease its policy in Q3 2024, much later than other major Emerging Markets.”
The post Indian Economy Hits 8.4% Growth Rate! appeared first on The Jaipur Dialogues.
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Data released by NSO reveals that the Indian economy grew at a much faster rate than expected. It grew at 8.4% in Q3 of FY 2023-24. This is much higher than the earlier 8.1% in the previous quarter i.e., in 2022-23.
According to NSO, GDP is predicted to have grown by 8.4% to ₹43.72 lakh crore in Q3 of 2023–24 at constant (2011–12) prices, up from ₹40.35 lakh crore in Q3 of 2022–23. The GDP at current prices is said to have grown by 10.1% in Q3 of 2023–24 to ₹75.49 lakh crore from ₹68.58 lakh crore in Q3 of 2022–23.
Key Takeaways-
- The manufacturing sector, which has only contributed 17% during the last ten years, grew by 11.6% annually.
- Growth in Q3 (2023-24) was led by a 9.5% increase in the construction industry.
- Services including public administration, defense, and others witnessed a growth of 7.5% as opposed to 3.5% in the third quarter of 2022-23.
- The agricultural sector recorded a contraction of 0.8% as opposed to an expansion of 5.2% in the previous quarter. This was largely on account of irregular and patchy monsoon season.
- The services sector, which includes trade, hotel, transportation, communication, and broadcasting services, grew by 6.7%.
- In the December quarter, compared to the same period last year, private consumption increased by 3.5%. On the other hand government spending decreased by 3.2%.
- Investment increased by 10.6% during this quarter compared to the same period last year.
Pc: TOI
The overall growth in GDP is influenced by the growth of particular sectors, e.g. manufacturing, service and construction sector.
The construction sector witnessed a double digit growth in the financial year of 2024. This is driven by strong demand for housing and government’s infrastructural boost.
Expert Opinions-
According to Chief Economic Advisor, Nageswaran, “The economy continues 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.”
Nish Bhatt, Founder & CEO, Millwood Kane International highlighted that at 8.4 per cent YoY, this is the strongest growth since the second quarter of 2022. “In the coming years, India is expected to maintain its position as one of the world’s fastest growing economies, exceeding any comparable emerging market country. However, due to the impact of food price inflation, geopolitical and Red Sea crises, we may see some short term moderation.”
Thamashi De Silva, Assistant India Economist, London stated, “Any slowdown in growth will be mild, especially since the government’s infrastructure drive is likely to stimulate activities.” This will limit any immediate need for a reduction in interest rates. “We think the Reserve Bank of India will be starting to ease its policy in Q3 2024, much later than other major Emerging Markets.”
The post Indian Economy Hits 8.4% Growth Rate! appeared first on The Jaipur Dialogues.
Continue reading...