Updated February 29th, 2024 at 19:05 IST

India Q3 GDP grows at 8.4%, beats estimates

India remained one of the fastest growing major economy of the world, growing at 8.4% in December quarter as against 7.% in the previous quarter.

Reported by: Business Desk
Indian economy | Image:Unsplash
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India’s Q3 GDP: India's economic growth showcased a robust growth rate of 8.4 per cent in the December quarter, reaffirming its position as the world's fastest-growing major economy. The Ministry of Statistics & Programme Implementation (MOSPI) announced the figures, citing a stellar performance in the manufacturing and construction sectors as key drivers behind the surge.

The latest data release from the National Statistical Office (NSO) underlines India's economic momentum, with the third consecutive quarter surpassing the 7 per cent mark. The manufacturing sector notably soared by 11.6 per cent, while the construction sector exhibited a commendable growth rate of 9.5 per cent.

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The GDP data for the previous quarter was revised upwards to 8.1 per cent and 8.2 per cent for the first quarter.

In its second advance estimate, the NSO projected India's growth for the fiscal year 2023-24 at 7.6 per cent, underscoring sustained economic expansion. The agricultural sector contributed positively, recording a growth rate of 3.8 per cent.

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"GDP growth of 8.4 per cent in the third quarter of FY24 has strengthened India's position as the fastest-growing major economy globally. The growth trajectory is a testament to India’s economic resilience and its capacity for sustained development. The manufacturing sector, with an impressive double-digit growth rate, alongside the construction sector, which saw a healthy growth rate of 9.5 per cent, was pivotal,” said Anshuman Magazine, chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE.

“These sectors not only bolster the economy but also significantly contribute to the real estate market's dynamism.  The growth in construction indicates a robust demand for residential and commercial spaces, underscoring a vibrant real estate market,” added Magazine.

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The revised growth forecast for the fiscal year also reflects a positive trend, with the GDP expected to reach Rs 293.90 lakh crore, marking a notable 9.1 per cent increase over the previous fiscal year. Meanwhile, nominal GDP for the same period is estimated to rise to Rs 293.90 lakh crore, further highlighting India's economic resilience amidst global uncertainties.

The data release comes as a surprise, exceeding the Reserve Bank of India's earlier growth projection of 7 per cent for the December quarter. It indicates a robust economic foundation, underpinned by strong domestic demand and resilience across key sectors.

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Furthermore, the NSO revised the GDP growth for the fiscal year 2022-23 to 7 per cent, marginally lower than the previous estimate of 7.2 per cent, reflecting evolving economic dynamics.

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Published February 29th, 2024 at 17:35 IST