India’s Q3 GDP beats estimates, comes in at 8.4%, FY24 forecast now at 7.6%

According to government data released on Thursday, India’s economy expanded by 8.4% in the December quarter compared to the same period last year. This growth outpaced the 7.6% expansion seen in the previous quarter.

The robust performance in Q3 has propelled the full-year fiscal year 2024 (FY24) growth to 7.6%.

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Although personal consumption growth remained at 3.5% in Q3, there was a significant rise in gross fixed capital formation, which increased by 10.6%. Furthermore, construction activity saw strong growth, registering a 10.4% expansion compared to just over 12% in the previous year.

Agriculture experienced a decline of 0.8%, a notable shift from the 1.6% growth observed in the previous quarter. The mining sector saw growth of 7.5%, a slight decrease from the 11.1% expansion recorded in the preceding quarter. The manufacturing expanded by 11.6%, showing a slight deceleration from the 14.4% growth seen in the prior quarter. The electricity and other public utilities sector exhibited growth of 9%, down from the 10.5% growth recorded previously.

Trade, hotels, transport, and communication sectors experienced a significant uptick, expanding by 6.7%, compared to the 4.5% growth seen in the prior quarter. The financial services sector also saw growth, increasing by 7% in the third quarter, compared to 6.2% growth in the previous quarter.

Moreover, the public administration segment exhibited growth of 7.5% in the third quarter, indicating a slight decrease from the 7.7% growth recorded in the preceding quarter.