Updated March 1st, 2024 at 15:55 IST

India's GDP growth beats forecasts, maintains global economic momentum: Analysts

Unexpected acceleration in GDP growth has led experts to reevaluate their forecasts, with the actual figure surpassing earlier projections by leaps and bounds.

Reported by: Business Desk
Q3 GDP rises 8.4% | Image:Freepik
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India Q3 GDP: India's economic trajectory has taken an impressive turn as the third quarter GDP figures for fiscal year 2023-24 surged by 8.4 per cent, exceeding most market expectations.

The robust growth has been underpinned by a stellar performance in various sectors, particularly manufacturing and construction, showcasing the resilience and potential of the Indian economy amidst global uncertainties.

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The unexpected acceleration in GDP growth has led experts to reevaluate their forecasts, with the actual figure surpassing earlier projections by leaps and bounds.

Raghvendra Nath, managing director of Ladderup Wealth Management said, "India continued to hold its throne in terms of fastest growing economies globally, with GDP growth at 8.4 per cent. The number came as a pleasant surprise with manufacturing & construction having grown at a good rate."

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The buoyancy in economic indicators has prompted a positive sentiment among investors, with Shlok Srivastav, Co-founder & COO of Appreciate, noting that India's performance merits its position as an economic outlier in the global landscape.

Moreover, the revision of GDP estimates for fiscal year 2023-24 to 7.6 per cent from the previous projection of 7.3 per cent further underscores the country's economic resilience and potential for sustained growth. However, challenges persist, particularly concerning tumbling personal consumption levels and declining growth rates in agricultural activities, as highlighted by economic analysts.

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Nikhil Gupta, Chief Economist at MOFSL Group, stressed on the importance of sustained private consumption for India's economic growth to be truly sustainable.

“Despite challenges, India's real GDP growth remains impressive, outpacing earlier forecasts and positioning the country as one of the fastest-growing major economies globally,” Gupta added.

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With double-digit growth in manufacturing and construction sectors, India's GDP growth in the December quarter showcases a remarkable performance, surpassing market projections and retaining its status as the world's fastest-growing major economy.

While India is expected to maintain its position as one of the world's fastest-growing economies, near-term moderation may be observed due to inflationary pressures and geopolitical uncertainties, as highlighted by Nish Bhatt, Founder & CEO of Millwood Kane International.

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India's economic growth trajectory remains promising, fuelled by robust performances across various sectors and supported by favourable policy measures.

Despite challenges, the country's resilience and potential for sustained growth continue to instill confidence among investors and economists alike.

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Published March 1st, 2024 at 09:35 IST