The Indian economy exhibited remarkable growth during the third quarter of the fiscal year 2023-24, surpassing expectations and defying projections.
India’s GDP recorded a robust expansion of 8.4% during the October - December period, showcasing sustained momentum after achieving growth rates exceeding 8% in the two preceding quarters.
According to the official government data released on Thursday, the full-year FY24 GDP growth estimates have been revised to 7.6% from an earlier projection of 7.3%
Buoyed by strong private-sector investment and a pick-up in services spending, the Q3 GDP growth was even higher than the projections of the Reserve Bank of India (RBI) which projected real GDP growth for FY24 at 7% with Q3 at 6.5% and Q4 at 6%.
A Mint poll by 17 economists had projected GDP growth at 6.6%.
Soumya Kanti Ghosh, Group Chief Economic Adviser at State Bank of India believes FY24 GDP growth to be near 8%.
“The third quarter GDP numbers jolted the psyche and cognitive framework of most in markets, while sweeping some by a pleasant surprise.
Clearly, right policy prisms and perspectives can trump irrational expectations bordering fault lines. Based on the FY24, 7.6% GDP growth, we estimate Q4 GDP growth at 5.9%, which we believe is an understatement.
Thus, it is most likely that FY24 GDP growth could be within striking distance of 8%," Ghosh said.