India's GDP grew by 6.2% in the third quarter of the 2024 fiscal year, an improvement from 5.6% in the previous quarter.
This growth was slower than the 9.5% growth in the same period in 2023.
The growth was 0.2% below the Reserve Bank of India's estimate for Q3.
Key Drivers:
Government spending surged by 8.3%.
Private consumption grew by 6.9%.
Exports rose by 10.4%, a significant jump compared to last year's 3%.
Imports decreased by 1.1%, partly due to the depreciation of the rupee.
Growth in Gross Fixed Capital Formation (investment) slowed to 5.7%, down from 9.3% last year.
Sectoral Growth:
Primary sector (mainly agriculture) grew by 5.2%.
Secondary sector (manufacturing) grew by 4.8%.
Tertiary sector (services) grew by 7.4%.
To meet the full-year GDP target of 6.5%, Q4 would need to grow by 7.6%, which experts say is optimistic.
Economists suggest the projected Q4 growth of 7.5% may be too high, with the final annual growth likely to be lower by 0.2-0.3% than current estimates.
The previous year’s GDP growth (2023-24) was revised to 6.5%, down from 9.2%.
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