Strong growth in manufacturing and good performance of mining and construction pushed the economic growth in October-December quarter (Q3) of Fiscal Year 2023-24 to 8.4 per cent, defying all the expectations. Also, growth rate for full fiscal of 2023-24 upped to 7.6 per cent from earlier projection of 7.3 per cent.
“Robust 8.4 per cent GDP growth in Q3 2023-24 shows the strength of Indian economy and its potential. Our efforts will continue to bring fast economic growth which shall help 140 crore Indians lead a better life and create a Viksit Bharat,” Prime Minister Narendra Modi said in a tweet. Chief Economist Advisor V Anantha Nageshwarn hopes that like three years of post Covid (FY22, FY23 and FY24) years, FY 25 growth could be 7 per cent.
Decoding entire growth number, Swati Arora, Economist with HDFC Bank, said upward revision in first two quarters of FY24 in part due to a downward revision in data for previous quarters of FY23. Now, “computed growth for Q4 FY24 is pegged at 5.9 per cent,” she said.
Fiscal Deficit
Meanwhile, Centre’s fiscal deficit, difference between expenditure and income, touched 64 per cent of revised estimate during April-January period of current fiscal. The government has revised the estimate of fiscal deficit to ₹17.35-lakh crore or 5.8 per cent of the GDP. Based on the latest trends, experts believe, the deficit for full fiscal would be as projected in revised estimate.
Core sector
However, the eight core industries’ output growth slumped in January 2024 to a 15-month low of 3.6 per cent, which is also the lowest monthly print so far this fiscal.
The latest reading was lower than revised 4.9 percent growth recorded in December 2023 and 9.7 per cent recorded in January 2023, official data released on Thursday showed. Six of the eight core industries recorded positive growth for the month under review.
