India's GDP Grows at 8.4% in Q3 2023-24

Defense News ,India :-  In a remarkable display of economic vigor, India's growth took a significant leap on February 29, propelled by the leap year. The second advance estimates, released on Thursday, revealed a robust Q3 GDP growth of 8.4%, surpassing consensus projections of 6.8%.

For the fiscal year FY24, the growth rate is anticipated to conclude at 7.6%, attributing this success to the activation of private investments, a long-awaited participant stepping into the economic arena. This projected growth rate exceeds market and RBI estimates of 7%, providing the government with a favorable conclusion to its second term, despite challenges such as uneven rural recovery and a slightly subdued private consumption.

In absolute figures, the real GDP is estimated at Rs 172.90 lakh crore, a notable increase from FY23's Rs 160.71 lakh crore. Q3 growth is pegged at Rs 43.72 lakh crore, reflecting a substantial rise from Rs 40.35 lakh crore in the previous year. Despite a modest sequential growth of 4.4%, the first nine months of FY24 witnessed an overall GDP growth of 8.2% over FY23.

While the agriculture sector's growth remains sluggish at 1.2%, the industrial sector is thriving, with mining and manufacturing registering impressive growth rates of 8.4% and 10.3%, respectively. However, the services sector, although reporting overall growth, saw a significant slowdown in its major sub-segment, trade, hotels, and transport, which expanded at a rate of 6.8%, compared to 14.2% the previous year.

In Q3, agriculture, forestry, and fishing faced a setback, contracting by 0.8%, primarily due to lower output of kharif crops. The industrial sector grew at 9.5%, a slight decrease from the 12.5% registered in Q2, attributed to an adverse base effect and a deceleration in volume expansion.

On the supply side, six out of eight broad indicators witnessed lower sequential growth in Q3, yet outperformed the previous year. On the expenditure side, both investments and consumption played a crucial role in supporting government expenditure. Private consumption recorded a modest 3.5% growth during Q3, influenced by inflationary pressures on household budgets. In contrast, investments showcased a commendable 10.6% growth over the previous year, although sequential growth remained flat.

Looking ahead, Nish Bhatt, Founder & CEO of Millwood Kane International, predicts that India will maintain its status as one of the world's fastest-growing economies. However, he suggests a potential near-term moderation due to the inflationary impact of food prices, geopolitical concerns, and the Red Sea crisis.