The rise of the Indian economy with an 8.4% spike in December quarter Q3 GDP peaks.
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The growth of the Indian economy has seen a big jump, as it extended by 8.4% from October to December last year. The construction and manufacturing sectors have played a vital role in the growth. The growth came as an astonishment to many economists. It is extremely important to sustain fast economic growth to maintain a good balance in the financial growth of the country.
By the end of December, there had been 6.6% to 7.2% economic growth. The growth rate was discovered to be approximately 6.5%. The latest estimate of India's GDP for the third quarter of 2024 was made public by the statistical ministry on February 29.
Strong performance in the manufacturing and construction sectors of the country.
The growth of Indian GDP has seen a rise of 8.4%. The powerful growth of 8.4% GDP reveals the passion for the country’s economy. The construction sector saw a jump as it grew by 9.5%, down from 13% in the previous years.
The National Statistical Office modified the GDP growth for 2022–23 to 7%, an increase from the initial estimate of 7.2%.
Factors that led to poor Agriculture
The drop in the agriculture sector was the result of poor monsoon conditions and El Nino impacts.
In the December quarter, India’s agriculture shrank by 0.8%, following a 1.6% expansion in the prior quarter. At the same time as the previous fiscal year, the growth rate was 5.2%.
Growing rabi has somewhat been favorable compared to the previous year; however, as a whole, the agricultural overall income is expected to do better in 2024 and the upcoming years as the food industry is expected to grow, as stated by chief economic advisor V. Anatha Nageswaran.
Areas that saw a fall
A 2% contraction in government consumption saw a decline during Q3 FY24.
During the December quarter, private spending in the sector increased by 5.2% compared to the previous year.
There was a fall in the exports contributing to the GDP, falling from 23.3% to 22.2%.
Imports in the GDP also decreased by 27.5% in the prior quarter.
The quantity of investments made in the country, as measured by the gross fixed capital formation (GFCF), slightly decreased in the December quarter of FY24.
Ranjani Sinha, chief economist at Care Edge Ratings, noted that consumer spending hasn’t been very strong recently. As he described, he said that the key thing to focus on is whether consumer spending improves across the board. Another element is seeing real progress in investments related to the private sector.
Growth
Manufacturing sector-11.6%
Construction sector-9.5%
Conclusion
To keep the economy growing in a smooth manner, we need people to spend money (consumption) and businesses to invest in new projects (private investment). The Chief Economic Advisor, V. Anantha Nageswaran, made it clear that our economy is changing in important ways. He talked about how we're improving infrastructure like roads, bridges, and digital technology (physical and digital infrastructure) to make our economy stronger. Prime Minister Narendra Modi also expressed his determination to sustain fast economic growth.
The National Statistical Office discloses that the economy is expected to grow by 7.6% in 2023–24, according to the second advance estimate, as opposed to the first advance estimate of 7.3%.
The data also pegged GDP growth in the third quarter of the fiscal year at 8.4% and revised upward the growth projection for the first and second quarters to 8.2% and 8.1%, respectively.
The advance estimates of national income are calculated using a method called the benchmark-indicator approach. This means that data from the previous year (2022–23) serves as a standard, representing various sectors used to project the current year's (2023–24) estimates. The first advance estimates for 2023–24 were primarily based on limited data and used the provisional estimates from 2022–23 as the starting point, as stated officially.
The powerful growth of 8.4% GDP reveals the passion for the country’s economy. Q3 GDP figures give expectations for the rise of the economy to continue amidst domestic and global challenges.
