India’s economy posted remarkable growth during the third quarter of fiscal 2023-24, beating expectations and beating projections. India’s GDP expanded robustly by 8.4% during the October-December period, showing sustained momentum after posting a growth rate of over 8% in the previous two quarters.
According to official government data released on Thursday, full-year 24 GDP growth estimates were revised up to 7.6% from an earlier projection of 7.3%.
Thanks to strong private sector investment and an increase in spending on services, GDP growth in Q3 was even higher than the Reserve Bank of India’s (RBI) projection of 7% real GDP growth in FY24 and 6.5% in Q3 % and Q4 at 6%.
Also Read
- Reliance Industries and Walt Disney announced $8.5 billion merger
- Household Consumption Expenditure Survey findings released
Soumya Kanti Ghosh, Group Chief Economic Advisor at State Bank of India, believes GDP growth in FY24 will be close to 8%.
There was a sharp wedge of 190 basis points (bps) between GDP and gross value added (GVA) growth, which economists said reflected higher growth in the government’s net indirect taxes, possibly with lower subsidies. The second estimate for FY24 puts real GDP 30 basis points higher at 7.6%, although real GVA was unchanged at 6.9%.
VAT growth was just 6.5% in October-December, down from 7.7% in the previous quarter. Gross value added is GDP minus net taxes on products.
