Robust 8.4% Q3 GDP growth reflects India’s economic strength: PM Modi

After the GPD numbers were released today, PM Modi said, “Robust 8.4% 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!”

” This wide gap followed from a surge in the growth of net indirect taxes to a six-quarter high 32% in this quarter, which is unlikely to be sustainable. In our view, it may be more appropriate to look at the trend in the GVA growth to understand the underlying momentum of economic activity,” said Aditi Nayar, Chief Economist, Head Research and Outreach, ICRA Ltd on GDP.

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The strong performance in the third quarter has boosted the overall growth for the fiscal year 2024 to 7.6%.

There was a noteworthy increase in gross fixed capital formation, rising by 10.6%. Construction activity gre by 10.4% compared to slightly over 12% in the previous year. Agriculture saw a decline of 0.8%.

The mining sector experienced growth of 7.5%, slightly lower than the 11.1% expansion seen in the previous quarter. Similarly, manufacturing expanded by 11.6%, indicating a slight slowdown from the 14.4% growth in the prior quarter. The electricity and other public utilities sector also exhibited growth, albeit at a reduced rate of 9% compared to the 10.5% growth previously recorded.