GDP figures released on Thursday, and they showed higher-than-expected growth of 6.8%
The GDP numbers that were released on Thursday surprised every economist who had predicted 6.8% growth this quarter.
As stated by Reserve Bank of India (RBI) governor Shaktikanta Das approximately a month ago, the country's GDP growth in the second quarter of FY24 was predicted to be strong.
He predicted that the nation's Q2 growth would surprise everyone on the upside during a media event on October 31, and he said true.
7.6% growth in India's GDP
The GDP figures, which were released on Thursday, took the economic experts by surprise as they all predicted a 6.8% growth this quarter. But the real figure, 7.6%, surprised everyone.
On November 1, 2023, the government released the monthly revenue collection data for the Goods and Services Tax (GST), and it was clear that this kind of growth was underway. October of this year saw a spike in the monthly GST collection to Rs.1.72 lakh crore, the second-highest amount since the new indirect tax regime was enacted in July 2017. The monthly GST collection is a reflection of actual business activities.
Index of Industrial Production (IIP) increased by 9.7%
Furthermore, the core Index of Industrial Production (IIP) increased by 9.7% on average during the second quarter of FY24, and the PMIs for manufacturing and services both showed high levels, averaging 57.9 and 61.1, respectively..
Consequently, India's trajectory as the world's fastest-growing major economy persisted. And this momentum for growth is here to stay. A recent report took this into account.
The growth engine of Asia-Pacific is predicted to move from China to South and Southeast Asia, with India leading the way and seeing its GDP rise to 7% by 2026, according to S&P Global Ratings' credit analysis report titled "China Slows, India Grows" released earlier this week. And it's obvious.
India's economic growth is driven by its sizable domestic market
India's success is noteworthy in addition since it is being achieved in the face of a strong global headwind. Earlier this week, Union Finance Minister Nirmala Sitharaman stated that although domestic strengths are sustaining India's rapid growth, external headwinds are negatively impacting the Indian economy.
Despite global headwinds and geopolitical challenges, she said, India's economic growth is still driven by its sizable domestic market, the middle class's purchasing power, and its stable policies. HT reported it on Tuesday.
Chief economic advisor V Anantha Nageswaran commented on the most recent GDP figures on Thursday, stating that while there was a risk to the downside from external factors, the Indian economy appeared to have bright growth prospects. He also praised the government's initiatives to sustain rapid economic growth, citing the National Logistics Policy, PM GatiShakti, massive capital expenditures, growth of public digital platforms, and Production-Linked Incentive (PLI) programs.
India's robust manufacturing sector significantly contributed to growth
In fact, the second quarter's 7.6% GDP growth, which came after the first quarter's notably robust 7.8% growth rate, is a significant accomplishment. It turned out to be a greater accomplishment, primarily because India's robust manufacturing sector significantly contributed to the growth in Q2.
Proper policies and well-timed incentives have allowed the government to grow the GDP by 7.7% in the first half of 2023–2024.
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With this kind of advantage over other major economies, India is probably going to do better during the entire FY24 than other large economies.
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