The released GDP figures for the current financial year’s December quarter are a testament to the Indian economy’s vigorous advancement. Indeed, the government has reported a third-quarter GDP growth rate at 8.4%, significantly exceeding forecasts. This economic surge is attributed to an acceleration in manufacturing activities and increased government expenditure, contributing to the GDP's rapid pace. The previous quarter saw a GDP Growth of 7.6 percent.
Better than expected GDP figures emerged
It's noteworthy that India remains the world's fastest-growing major economy, praised by institutions from the World Bank to the IMF. The remarkable figures for the third quarter also affirm the economy's swift momentum. Statistics released by the Ministry of Statistics and Programme Implementation on February 29 show that India's Gross Domestic Product (GDP) has surged in the December quarter. A year-on-year growth rate of 8.4 percent signifies the strongest growth since the second quarter of 2022, which was forecasted at only 6.6 percent.
Witnessing the Indian economy's rapid pace, the NSO has subsequently revised its growth rate prediction for the fiscal year 2023-24 to 7.6 percent. Previously, in January 2024, an initial advance estimate projected the GDP Growth Rate for the current fiscal year at 7.3 percent.
Expectations by SBI and rating agencies
SBI's Economic Research Department had released its analysis while estimating the GDP growth for the third quarter of fiscal year 2023-24. The institution had predicted a growth rate of 6.8 percent. The Reserve Bank also estimated the GDP's growth to be 7 percent for the third quarter of fiscal year 2024, while rating agency ICRA had pitched a modest expectation of just 6 percent growth for the December 2023 quarter. However, the figures that have surfaced surpass all these projections.
Examining the government's released GDP data in detail, the manufacturing sector has witnessed an 11.6 percent growth rate. Meanwhile, the agriculture sector's growth rate stood at 3.8 percent. India has maintained its tag as the world's fastest-growing major economy. For these reasons, the growth rate prediction for fiscal year 2023-2024 has been revised upward from 7.3 percent to 7.6 percent.
