New Delhi: India’s economy defied expectations by growing at an impressive rate of 8.4% in the quarter ending in December, driven by strong expansion in the manufacturing and construction sectors.
Analysts had predicted a slower growth rate, with various reports suggesting a GDP slowdown to nearly 6.5%, the lowest in the first three quarters of FY24.
According to the second advance forecast by the National Statistical Office (NSO), India is on track to achieve a growth rate of 7.6% for the fiscal year 2024, positioning it as one of the fastest-growing economies globally.
The third-quarter economic growth marks a significant increase from the 4.4% growth recorded in the same period of the previous fiscal year, FY23.
Chief Economic Advisor Venkatramanan Anantha Nageswaran noted that India’s economy continued to defy expectations, indicating a structural transformation. He suggested that global agencies should consider adjusting their estimates of India’s potential growth.
“High-frequency indicators point toward continued good performance in Q4 FY24 too. That is a good sign for the growth momentum,” he added.
Prime Minister Narendra Modi hailed the robust 8.4% GDP growth in Q3 2023-24, stating that it showcases the strength and potential of the Indian economy. He emphasized that efforts will continue to ensure fast economic growth, benefiting all 1.4 billion Indians and creating a developed India.
