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India GDP Grows a Robust 8.4%

Team Finance Saathi

01/Mar/2024

In the fourth quarter of 2023, the Indian economy witnessed a remarkable expansion of 8.4% year-on-year, marking its strongest growth since the second quarter of 2022.

This surpassed expectations of 6.6% and exceeded the upwardly revised 8.1% growth recorded in the previous quarter. On the production front, notable accelerations were observed in the services sector, which grew by 6.7% compared to 4.5% previously, and in finance and real estate, which saw a growth rate of 7% versus 6.2%.

Despite a slight moderation, the manufacturing sector continued to exhibit robust growth, expanding by 11.6% as opposed to the previous 14.4%. However, sectors such as utilities and construction maintained strong growth rates, albeit slightly lower than before, with increases of 9% (down from 10.5%) and 9.5% (down from 13.5%) respectively. Conversely, adverse weather conditions and the El Nino effect led to a contraction of 0.8% in the farm sector, compared to an earlier growth of 1.6%.

On the expenditure side, private consumption witnessed a faster growth rate of 3.5%, up from 2.4% in the third quarter, while investment growth remained robust albeit slightly slower at 10.6% compared to 11.6%. Both exports and imports experienced deceleration in their growth rates, with exports expanding by 3.4% (down from 5.3%) and imports by 8.3% (down from 11.9%). Public expenditure, after a significant surge of 13.8% in the third quarter, contracted by 3.2%.

Looking ahead, the forecast for the 2023/2024 fiscal year growth rate was revised upwards to 7.6% from 7.3%, indicating continued optimism regarding the trajectory of the Indian economy.

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India GDP Grows a Robust 8.4%

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