India's Economy Grows 8.4 Per Cent In Q3FY24; FY24 Growth Forecast At 7.6 Per Cent

As per NSO data, double-digit growth rate of construction sector (10.7 per cent), followed by a good growth rate of manufacturing sector (8.5 per cent) have boosted the GDP growth in FY23-24

India's Gross Domestic Product (GDP) growth rate in the quarter ended December 2023 (Q3FY24) was 8.4 per cent, according to the data released by the Ministry of Statistics and Programme Implementation on Thursday. This is higher than the Reserve Bank of India's (RBI's) estimate of 6.5 per cent. In the previous quarter, it was 7.6 per cent and 7.8 per cent in the July quarter. 

According to the release, the growth rate of GDP during 2023-24 is estimated at 7.6 per cent as compared to growth rate of 7.0 per cent in 2022-23. Double-digit growth rate of construction sector (10.7 per cent), followed by a good growth rate of manufacturing sector (8.5 per cent) have boosted the GDP growth in FY23-24. 

The NSO revised the GDP growth for 2022-23 to 7 per cent against the earlier estimate of 7.2 per cent. Nominal GDP or GDP at Current Prices in the year 2023-24 is estimated to attain a level of Rs 293.90 lakh crore, against Rs 269.50 lakh crore in 2022-23, showing a growth rate of 9.1 per cent.

At the lastes MPC, RBI Governor Shaktikanta Das announced that real GDP growth is projected in FY24-25 at 7 per cent, with Q1 at 7.2 per cent; Q2 at 6.8 per cent; Q3 at 7.0 per cent; and Q4 at 6.9 per cent. "The risks are evenly balanced," he noted.

Earlier on Wednesday, an economist from State Bank of India (SBI) in a report forecast that India's GDP is poised to expand within the bracket of 6.7-6.9 per cent during the third quarter of the fiscal year 2023-24. Soumya Kanti Ghosh, the Group Chief Economic Advisor, said, "Considering a slight dip in economic activity in Q3 FY24, we anticipate GDP growth to range between 6.7 to 6.9 per cent, accompanied by a gross value added (GVA) growth of 6.6 per cent." India Ratings and Research had also predicted that the growth rate in Q3 would be 6.5 per cent. 

On the other hand, the combined Index of Eight Core Industries (ICI) increased by 3.6 per cent (provisional) in January 2024 as compared to the Index of January 2023. The production of Coal, Steel, Cement, Natural Gas, Electricity, and Crude Oil recorded positive growth in January 2024.