Q3 GDP growth: India's economic growth witnessed strong acceleration in the October-December quarter of the fiscal year 2023-24, with GDP growth soaring 8.4 per cent. The upturn came on the back of the double-digit expansion in the manufacturing sector, coupled with impressive performances from the mining & quarrying and construction sectors, as per data unveiled by the National Statistical Office (NSO) on Thursday.

In a stark contrast to the 4.3 per cent GDP growth registered in the corresponding quarter of 2022, the manufacturing sector witnessed a major upswing, with output surging by 11.6 per cent compared to a contraction of 4.8 per cent in the previous year. Similarly, mining and quarrying saw an upsurge, growing at 7.5 per cent in contrast to 1.4 per cent a year ago, while the construction sector maintained its momentum at 9.5 per cent growth, mirroring the rate from the previous year.

However, the agricultural sector witnessed a downturn, with output declining by 0.8 per cent during the quarter, in stark contrast to a growth of 5.2 per cent in the same period the previous year.

Service sector growth

The services sector, encompassing trade, hotels, transport, communication, and broadcasting-related services, saw a growth of 6.7 per cent during the third quarter, down from 9.2 per cent previously. Financial, real estate, and professional services expanded by 7 per cent, while public administration, defence, and other services posted a growth of 7.5 per cent, compared to 3.5 per cent in the third quarter of the previous fiscal year.

Chandrajit Banerjee, Director General, Confederation of Indian Industry (CII) hailed the surge in the country's GDP growth for the third quarter of the fiscal year 2023-24. In a statement issued today, Banerjee expressed enthusiasm regarding the robust set of GDP growth numbers, which surpassed expectations.

Banerjee stressed that this expansion occurred despite recurring geopolitical tensions, attributing it to a healthy double-digit growth in the manufacturing and investment sectors. Banerjee highlighted the positive impact of initiatives such as the Production Linked Incentive (PLI) scheme and other benefits tailored for the manufacturing sector, which boosted its growth.

"What is more comforting to note is the fact that the robust expansion came despite the recurring spate of geopolitical flashpoints and was premised on a healthy double-digit expansion in manufacturing and investment. The PLI scheme and a host of other benefits announced for the manufacturing sector have buttressed the strong growth posted by the manufacturing sector," Banerjee said.

Growth projected at 7.6%

The NSO's second advance estimate for the fiscal year projected economic growth at 7.6 per cent, an increase from the earlier estimate of 7.3 per cent released in January. Real GDP for the year 2023-24 is estimated at Rs 172.90 lakh crore, indicating a growth rate of 7.6 per cent compared to 7.0 per cent in the previous fiscal year.

The NSO also revised downward the GDP growth for 2022-23 to 7 per cent from the earlier estimate of 7.2 per cent. Per capita income and per capita PFCE (Private Final Consumption Expenditure) for the years 2021-22 and 2022-23 were also outlined, offering insights into the economic landscape's dynamics.