India's Q2 GDP Beats Expectations To Grow 7.6%; 'Shows Strength of Indian Economy', Says PM

India’s Q2 GDP Data Out: India’s gross domestic product (GDP) grew 7.6 per cent y-o-y during the July-September 2023 quarter (Q2 FY24) as compared with the 6.2 per cent growth recorded a year ago, according to the latest official data released on Thursday. The Q2 FY24 GDP growth is more than what was expected by analysts.

Also Read: 5 Key Factors Why India’s Q2 GDP Growth Beats Consensus Expectations

For Q2 FY24, analysts had expected a GDP growth between 6.5 per cent and 7.1 per cent year-on-year (y-o-y). The 7.6 per cent Q2 FY24 GDP growth is also way higher than the RBI MPC’s estimate of 6.5 per cent last month.

India’s economy had grown 7.8 per cent in the April-June 2023 quarter.

“Real GDP or GDP at Constant (2011-12) Prices in Q2 2023-24 is estimated to attain a level of Rs 41.74 lakh crore, as against Rs 38.78 lakh crore in Q2 2022-23, showing a growth of 7.6 per cent as compared to 6.2 per cent in Q2 2022-23,” according to an official statement.

According to the latest data released by the National Statistical Office (NSO), India’s gross value added or GVA, which is GDP minus net product taxes and reflects growth in supply, also grew 7.4 per cent during July-September 2023.

On the latest economic growth numbers, Prime Minister Narendra Modi said, “The GDP growth numbers for Q2 display the resilience and strength of the Indian economy in the midst of such testing times globally. We are committed to ensuring fast paced growth to create more opportunities, rapid eradication of poverty and improving ‘Ease Of Living’ for our people.”

During the three-month period ended September 2023, the US economy grew 5.2 per cent annually. China’s GDP expanded 4.9 per cent during the period.

According to the latest official data, growth in the manufacturing sector jumped to 13.9 per cent in the second quarter of the current fiscal as compared with minus 3.8 per cent in the year-ago period.

India’s agriculture sector, however, decelerated to 1.2 per cent growth in Q2 FY24, lower than the 2.5 per cent recorded in the July-September quarter of 2022-23.

Gross fixed capital formation (GFCF), which is an indicator of investment activity in the country, jumped 11.04 per cent to Rs 14,71,938 crore during the September 2023 quarter. GFCF accounts for 35.3 per cent of the GDP.

Private final consumption expenditure (PFCE) and government final consumption expenditure (GFCE) grew 3.13 per cent and 12.35 per cent, respectively, during Q2 FY24 over Q2 FY23.

GDP in nominal terms, which factors in inflation, grows 9.1 per cent as against 17.2 per cent last year.

India’s April-October 2023 Fiscal Deficit at 45% of Full-Year Target

The government’s fiscal deficit at the end of October touched 45 per cent of the full-year budget estimate, according to data released by the Controller General of Accounts (CGA) on Wednesday.

In actual terms, the fiscal deficit — the difference between expenditure and revenue — was Rs 8.03 lakh crore during the April-October period of 2023-24.

In the corresponding period last year, the deficit was 45.6 per cent of the budget estimates of 2022-23.

For 2023-24, the fiscal deficit of the government is estimated to be Rs 17.86 lakh crore or 5.9 per cent of the GDP.

India’s Key Infra Sectors Grow 12.1% in October

The output of eight key infrastructure sectors rose by 12.1 per cent in October 2023 against 0.7 per cent expansion in the year-ago period, according to the official data released on Thursday.

All the sectors except for fertiliser recorded healthy production growth in the month under review.

The core sector (coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity) growth in September was 9.2 per cent.