India’s economy expanded by 8.4% in the October-December quarter of FY 24, as per the GDP data released by the Statistics Ministry at 5:30 pm on February 29 for the third quarter of Financial Year 2023-24.
Economists are suggesting a potential deceleration in the growth figures, projecting a slowdown from the robust 7.6% growth observed in the September quarter of the current financial year.
Several economists have indicated a moderation in the GDP figures due to a nominal decrease in government spending, sluggish industrial output growth, and erratic monsoon conditions in the third quarter. According to a survey conducted by Mint, based on the insights of 17 economists, the GDP growth rate is expected to hover around 6.64% in Q3 FY 24, lower than the 7.6% reported in the previous quarter by the Statistics Ministry.
The Reserve Bank of India has forecasted a further slowdown in India’s economic growth to 6% in January-March, with a full-year growth projection of 7%.
The manufacturing sector witnessed a significant surge of 11.6%, while the farm sector experienced growth of 3.8%. Additionally, the growth rate for the fiscal year 2023/2024 was revised upward to 7.6% from the previous estimate of 7.3%.
Key Highlights:
– Agriculture experienced a decline of 0.8% in Q3, contrasting with a growth of 1.6% in Q2.
– Mining saw growth of 7.5%, an increase from 11.1% in the previous quarter.
– Manufacturing expanded by 11.6%, down from 14.4% in the prior quarter.
– Electricity and other public utilities expanded by 9%, a decrease from 10.5%.
– Construction grew by 9.5%, compared to 13.5%.
– Trade, hotels, transport, and communication expanded by 6.7%, an increase from 4.5%.
Furthermore, gross value added, which excludes indirect taxes and subsidies, is projected to have increased by 6.5% compared to a revised estimate of 4.8% during the same period in the previous year.
What is GDP?
GDP, or Gross Domestic Product, is a measure used to understand the overall economic health and size of a country. It calculates the total value of all goods and services produced within the country’s borders over a specific period, usually a year or a quarter. In simpler terms, GDP tells us how much stuff a country makes and how much money is earned from selling those goods and services. It helps economists and policymakers understand how well an economy is doing and how it’s growing over time.
