India’s GDP grew by 7.6% in the July-September quarter of the 2023-24 financial year, solidifying its position as the fastest-growing major economy. This growth follows the 7.8% growth experienced in the April-June quarter, showcasing the country’s economic strength.
According to data from the Ministry of Statistics and Programme Implementation, the real GDP in Q2 2023-24 is estimated to reach Rs 41.74 lakh crore, up from Rs 38.78 lakh crore in Q2 2022-23, resulting in a 7.6% growth compared to 6.2% in the previous quarter.
The Reserve Bank of India (RBI) had initially forecasted a real GDP growth of 6.5% for 2023-24, with Q2 at 6.5%, Q3 at 6.0%, and Q4 at 5.7%. However, rising inflation is a major concern for the central bank, posing potential risks to the growth outlook.
A survey conducted by industry body FICCI revealed that the Indian economy is projected to grow by 6.3% in 2023-24, with a minimum and maximum growth estimate of 6% and 6.6% respectively. The survey involved leading economists from various sectors.
The International Monetary Fund (IMF) increased its GDP growth forecast for India for 2023-24 to 6.3% in October, citing stronger-than-expected consumption during April-June as a driving factor. This marked the second upward revision since the April report, with earlier projections at 5.9% in April and 6.1% in July, bringing it closer to the 6.5% predicted by Indian authorities. The IMF also projected India’s GDP growth at 6.3% for 2024-25, unchanged from its previous projections.
In addition, the combined Index of Eight Core Industries (ICI) surged by 12.1% in October 2023 compared to the previous year. All eight core industries, including cement, coal, crude oil, electricity, fertilizers, natural gas, refinery products, and steel, recorded positive growth in production during October 2023. This data was released by the Union Ministry of Commerce and Industry.
