The Indian economy grew at its fastest pace in six quarters in the three months to Dec, led by robust manufacturing and construction sector growth. The strong growth has boosted govt's track record of handling the economy against the backdrop of global challenges ahead of the upcoming general elections.
Data released by National Statistical Office (NSO) showed the economy grew by a faster-than-expected 8.4% in the Oct-Dec quarter, higher than upwardly revised 8.1% in the previous quarter and above 4.3% in the third quarter of 2022-23.
Now, NSO estimates 2023-24 GDP growth at 7.6%, above earlier estimate of 7.3%, making India the fastest growing major economy in the world.
NSO has revised upwards the second and first quarters while revision to 2022-23 quarters also led to a favourable effect. GDP growth for FY23 was revised to 7% from the earlier 7.2%.
The Oct-Dec growth was also higher than RBI’ projection of 6.5%. The central bank had revised its GDP growth projection to 7% for 2023-24 from the earlier 6.5%.
Robust 8.4% GDP growth in Q3 2023-24 shows the strength of Indian economy and its potential. Our efforts will continue to bring fast economic growth which shall help 1,400 million Indians lead a better life and create a Viksit Bharat,” PM Modi posted on microblogging site X after the data release.
The finance ministry said India continues to be an outlier and remains the fastest-growing major economy in the Oct-Dec 2023 quarter and it builds on the momentum of the previous quarter. It said growth was broad-based, driven by robust investment demand.
The manufacturing sector recorded a double-digit growth of 11.6% compared to a contraction of 4.8% in the year-ago quarter, while construction grew 9.5% compared with similar expansion in the year earlier period. The farm sector remained a worry with a contraction of 0.8% compared to an expansion of 5.2% in the third quarter of the previous year, largely impacted by patchy monsoon rains.