GDP growth surges to 8.4% in Q3, surpasses estimates
New Delhi, February 29
India’s GDP (gross domestic product) grew at 8.4 per cent in the October-December quarter, stunning economists and the market which had forecast a much lower growth rate. This is the highest growth in the last seven quarters.
The government also revised upwards the estimated growth in real GDP during 2023-24 to 7.6 per cent as against the earlier estimate of 7 per cent in 2022-23.
The GDP growth in the third quarter was much higher than the 7.6 per cent recorded in the second quarter. Last year, the GDP growth in the third quarter was 4.3 per cent, according to official data released on Thursday.
Shows our strength
Robust growth shows the strength of our economy. Our efforts will continue to bring fast economic growth which shall help 140 cr Indians lead a better life. — Narendra Modi, Prime Minister
While the agriculture sector suffered a contraction of 0.8 per cent in the third quarter as against 5.2 per cent growth during the same period last fiscal, growth in seven other segments, especially manufacturing and mining, remained robust. However, part of the explanation for the high GDP comes from a staggering 32 per cent growth in net taxes even though gross value addition – that should ideally power GDP growth – remained at a tepid 6.5 per cent. The rise in net taxes was the highest in six quarters. The estimate for growth in the second quarter has now been revised upwards to 8.1 per cent, while that for the first quarter to 8.2 per cent from 7.8 per cent. It is because of this revision that the government expects the full-year GDP growth at 7.6 per cent to overshoot even the unexpectedly high first advance estimates of 7.3 per cent.
Real GDP in 2023-24 is estimated at Rs 172.90 lakh crore, against the first revised estimates of GDP for 2022-23 of Rs 160.71 lakh crore. A favourable base effect is also in play as the upward revision of GDP in the second advance estimate to 7.6 per cent from 7.3 per cent was also due to a 20 basis point cut in the GDP growth figure for 2022-23 to 7 per cent.
FY24 forecast up
- 7.6% FY24 growth as per revised estimate
- 11.6% manufacturing sector growth in Q3
- 7.5% mining sector growth
- 9.5% construction sector contribution
- 32% rise in net taxes
