India’s economic landscape witnessed a remarkable upswing in the third quarter as the Gross Domestic Product (GDP) soared beyond expectations. The Ministry of Statistics and Programme Implementation released data on February 29, revealing a robust growth rate of 8.4% for the December quarter on a year-on-year basis. This exceeded the initially anticipated 6.6% and even outshone the previous quarter’s impressive 7.6% growth.
The latest figures underscore a buoyant economic trajectory, showcasing India’s resilience and recovery from global uncertainties. The Statistics Ministry’s second advance estimates, projecting a GDP growth of 7.6%, reflect a positive adjustment from the initial estimate of 7.3% released before the Union Budget in January. This upward revision underscores the economic dynamism and the government’s adept fiscal management.
The accelerated growth signifies potential opportunities for various sectors, fostering optimism among investors and stakeholders. However, it also brings attention to the need for sustainable policies to ensure long-term economic stability amid global economic dynamics. The data serves as a testament to India’s ability to navigate challenges and emphasizes the importance of agile economic strategies in a rapidly evolving world.
Few more highlights:
India’s federal fiscal deficit in January: 11,026.02B (vs 9,822.78B previous).
Infrastructure output YoY in January: Actual – 3.6% (vs 3.8% previous).
Government reports manufacturing sector growth in Dec Qtr: +11.6% YoY.
Government reports farm sector growth in Dec Qtr: +3.8% YoY.
Economists suggest that the 8.4% growth in India’s third-quarter gross domestic product (GDP), surpassing expectations, might be overstated. They highlight a more moderate rise in gross value added, questioning the accuracy of the overall economic growth assessment.
• India’s GDP for Q3 surged by 8.4% YoY, exceeding expectations.
• Concerns arise as GVA, a purer growth measure, increased by a more modest 6.5%.
• GVA excludes indirect taxes and includes government subsidies, influencing the discrepancy with GDP.
• The divergence between GDP and GVA growth prompts questions about the accuracy of India’s economic assessment.
• Investment, up by 10.6% YoY, driven by government spending and real estate, remains a growth catalyst.
• Consumption, with a 3.5% increase, lags behind the broader economic expansion.
• Analysts express disappointment in the underwhelming improvement in private consumption during the festive season.
• The government’s conservative projection of 5.9% growth in Q1 2024 adds to discussions about the overall economic outlook.
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