The GDP figures released on Thursday surprised all economic experts who predicted 6.8% growth this quarter.
India’s gross domestic product (GDP) growth in Q2FY24 is expected to be good – and this has been indicated by Reserve Bank of India (RBI) Governor Shaktikanta Das for about a month.
Speaking at a media event on October 31, he noted that the country’s second-quarter growth rate would surprise everyone with its increase, and he was right. The GDP figures released on Thursday surprised all economic experts who predicted 6.8% growth this quarter. However, the actual figure of 7.6% is contrary to all predictions. Signs of this kind of growth were quite evident when the government announced monthly Goods and Services Tax (GST) collection figures on November 1, 2023. Monthly GST collections reflect actual business activity The economy increased sharply in October this year. year reached ₹1.72 lakh crore, the second highest monthly collection since the start of the new indirect tax regime in July 2017. Besides, the growth rate of Core Industrial Production index ( IIP) averaged 9.7% in the second quarter of fiscal 2024, and PMIs – both manufacturing and services – also showed high levels, averaging 57.9 and 61.1 respectively.
Thus, India continues its journey to become the fastest growing major economy in the world. And this growth momentum continues. This was reflected in a recent report.
S&P Global Ratings’ credit analysis report – “China slows, India grows” – indicated earlier this week that the growth driver for Asia-Pacific is expected to shift away from China to South Asia and Southeast Asia, with India in a prime position to see its GDP grow at 7% by 2026. And that’s obvious.
India’s growth story is also important because it takes place against a challenging global backdrop. Union Finance Minister Nirmala Sitharaman said earlier this week that global headwinds are negatively affecting the Indian economy, but domestic strength is supporting India’s strong growth. She said India’s large domestic market, the purchasing power of its middle class and stable policies continue to drive economic growth, despite global headwinds and local challenges. politics. HT reported this on Tuesday.
Commenting on the latest GDP figures, Chief Economic Advisor V Anantha Nageswaran on Thursday said the growth prospects of the Indian economy look bright, although external factors pose downside risks . He also praised the government’s policies to sustain high growth, including heavy capital expenditure, expansion of public digital platforms, Prime Minister GatiShakti, National Logistics Policy and programs production incentives (PLI) involved.
Indeed, the 7.6% GDP growth in the second quarter coupled with the remarkably high growth rate of 7.8% in the first quarter constitutes a major achievement. This turned out to be a bigger achievement, mainly because second-quarter growth benefited from a significant contribution from India’s strong manufacturing sector.
With appropriate policies and adjusted incentives, the government has achieved 7.7% GDP growth in the first half of 2023-24. Given its lead over other major economies, India is likely to outperform other major economies in FY24 overall.
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