India’s GDP Growth Reaches 7.6% in Q2 FY24, Fastest Among Major Economies

Business View
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In the earlier report, we stated that India will soon surpass Japan and Germany in the index of the largest economies in the world. The latest reports strongly make it true, as the economy of India continued to grow even in the quarter of July–September. According to multiple reports, the current financial year 2023–24 (Q2 FY24) showcases that the economy of India grew up to 7.6 per cent during the 3rd quarter (July–September), which remains India’s fastest-growing major economy in the world. As per GDP data, India will stand in the 5th position among the largest economies in the world in 2023. This latest gross domestic product data was shared by the statistics ministry on Thursday, November 30, 2023.

 

According to the statistics ministry, the ongoing rise in GDP growth has happened due to the continued support of government spending and the robust performance in the mining, construction, and manufacturing sectors. If the GDP continues to grow in this way, we will soon surpass Japan and Germany in the coming years. Furthermore, the data from the Ministry of Statistics and Programme Implementation represented on Thursday that “the real GDP, or GDP at constant prices in Q2 2023–24, is estimated to attain a level of Rs. 41.74 lakh crore, as against Rs. 38.78 lakh crore in Q2 2022–23, representing a growth of 7.6 per cent as compared to the 2nd quarter of 2022–23, which stood at 6.2 per cent.”

 

Prime Minister Narendra Modi has expressed his happiness over the continued growth in GDP and stated that the GDP growth statistics for the 2nd quarter of this fiscal showcased the strength and resilience of the Indian economy in the middle of testing times globally. The PM of India made an official tweet regarding it in which he stated that “the GDP growth numbers for Q2 display the resilience and strength of the Indian economy in the midst of such testing times globally. We are fully committed to ensuring fast-paced growth to build more opportunities, rapid eradication of poverty, and working to improve “ease of living” for our people.”

 

Earlier, the GDP growth of India for the April–June quarter stood at 7.8 per cent. Furthermore, the Reserve Bank of India (RBI) had maintained real growth in GDP for 2023–24 at 6.5 per cent, with the 2nd quarter at 6.5 per cent, the 3rd quarter at 6.0 per cent, and the 4th quarter at 5.7 per cent. Furthermore, nominal GDP, or GDP at present prices in the 2nd quarter of 2023–24, is approximately Rs 71.66 lakh crore against Rs 65.67 lakh crore in the 2nd quarter of 2022–23, representing a growth of 9.1 per cent. The last year, the 2nd quarter of 2022–23, showcased growth of 17.2 per cent. 

 

The latest GDP print performed well above expectations, as per the expectations of economists. The RBI and the government had been warning of a good number. On Wednesday, November 29, 2023, Ajay Seth, Economic Affairs Secretary, stated that he forecasts a “good” GDP growth number for Q2 2023–24. Shaktikanta Das, the governor of the RBI, also anticipated the growth in Q3 as he remarked that the July–September growth rate would be a surprise, which would be on the positive side. Although the number is quite high as compared to their expectations. Economists of QuantEco expressed their excitement and stated “Q2 FY24 GDP growth data of India offered us a “Just looking like a wow’ moment.”

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