Updated February 29th, 2024 at 21:58 IST

GDP at 8.4%: Prudent policies, tax reforms help India exceed projected growth rate

PM Modi hails India's GDP growth by 8.4% as Strength of Indian economy

Reported by: Saqib Malik
RBI | Image:ANI
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GDP at 8.4%: The quarter ending December has sprung a surprise with Gross Domestic Product (GDP) data coming in at 8.4 per cent, witnessing a double delight, against 4.3 per cent GDP recorded in Q3FY23. 

Experts with whom Republic Business spoke with said the Q3 GDP number at 8.4 per cent, is way above street estimates of 6.6 per cent, but Gross Value Added (GVA) at 6.5 per cent is entirely in line with street estimates. “A sharp divide between GDP and GVA for Q3 FY24 is largely on account of lower subsidy outgo,” Swati Arora, Economist at HDFC Bank told Republic Business

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“An upward revision in Q1 and Q2 of FY24 in part due to a downward revision in data for previous quarters of FY23,” the HDFC economist said. As per Arora, computed growth for Q4 FY24 is pegged at 5.9 per cent. Soon after the Ministry of Statistics and Programme Implementation (MOSPI) issued GDP growth numbers on Thursday, past projections pertaining to India’s growth were quite literally made obsolete. Notably, the International Monetary Fund (IMF) in its economic outlook had pegged India's growth to settle down at 6.4 per cent in FY24. 

Experts with whom Republic Business spoke with, said India is at the cusp of not just shattering past growth records, but was also set to become a global leader in sectors ranging from aviation, and automobile to becoming an Information Technology hub. 

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Reacting to the spurt in India’s growth rate, Prime Minister Narendra Modi hailed it by saying that it was the ‘Strength of the Indian economy’. “Robust 8.4% GDP growth in Q3 2023-24 shows the strength of the Indian economy and its potential. Our efforts will continue to bring fast economic growth which shall help 140 crore Indians lead a better life and create a Viksit Bharat!”, the Prime Minister posted on X. 

The spike in Q3FY24 growth rate is not a mere statistic. It comes on the back of prudent policies and taxation reforms, that have not just increased India’s direct tax collection and seen it rise by 160 per cent  to Rs 16,63,686 crore in the last ten years. 

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Published February 29th, 2024 at 20:28 IST