India grows by 8.4% in Q3, thwarting expectations of 6.6%

 

India grows 8.4% in Q3 led by 11.6% growth in manufacturing sector and 9.5% in construction

“GDP growth surpassed expectations in Q3, coming above 8%. The Q3 data on India's growth threw up a divergent trend, with the GVA growth moderating broadly on expected lines to 6.5% and the GDP expanding by a much higher-than-anticipated 8.4%. This wide gap could be due to a surge in the growth of net indirect taxes to a six-quarter high of 32% in this quarter, which is unlikely to be sustainable. In our view, it may be more appropriate to look at the trend in the GVA growth to understand the underlying momentum of economic activity.

Investments emerged as the fastest growing component of GDP in Q3 FY2024 and displayed a mild sequential dip, contrary to the sharp slowdown seen in government capex,” said Aditi Nayar, chief economist, ICRA Ltd

The number for Q1, Q2 FY24 has also been revised upwards to 8.2 per cent (against 7.8 per cent) and 8.1 per cent (against 7.6 per cent) respectively

India’s 2021 gdp growth was revised upwards from 9.1% to 9.7%
India’s 2022 gdp growth was revised downwards from 7.2%to 7.0%
India’s 2023 projected gdp growth was also revised upwards from 7.3% to 7.6%.

Source: ET