India’s gross domestic product (GDP) for the second quarter of the ongoing financial year accelerated to 7.6 per cent year-on-year as shown by the data shared by the Ministry of Statistics and Programme Implementation on Thursday. During the same period last year, the GDP growth stood at 6.2 per cent.
However, the GDP growth in the second quarter was marginally lower in comparison with the first quarter of FY24. In the first quarter, the GDP growth stood at 7.8 per cent in FY24. The Indian economy had expanded by 7.8 percent in April-June and 6.2 percent in July-September 2022.
It is to be noted that the Reserve Bank of India (RBI) had estimated GDP growth in the July-September quarter at 6.5 per cent. A poll of economists had estimated GDP growth at 6.8 per cent, despite the global economic slowdown. India’s growth would give space to the RBI, which held its rates for the fourth consecutive policy meeting in October, to focus on food inflation, which it believed to be uncomfortably high.
The stronger than expected growth can be attributed to strong urban consumption, manufacturing, and higher government spending. Manufacturing growth is at 13.9 per cent, while construction growth stood at 13.3 per cent. The agricultural growth has slowed down to 1.2 percent from 3.5 percent in April-June.
The estimated Nominal GDP at current prices for Q2 2023-24 stands at Rs 71.66 lakh crore, reflecting a 9.1 per cent growth compared to Rs 65.67 lakh crore in Q2 2022-23, where the growth rate was 17.2 per cent.
Meanwhile, the estimated GDP at current prices for the first half of 2023-24 is Rs 142.33 lakh crore, compared to Rs 131.09 lakh crore in the corresponding period of the previous year, indicating a growth of 8.6 per cent in H1 2023-24, as opposed to 22.2 per cent in H1 2022-23.
