India’s economy experienced a significant growth of 7.6% in the September quarter, securing its position as the fastest-growing major economy. This growth was primarily due to the improved performance of the manufacturing, mining, and services sectors, as per the government’s data released on Thursday.
The gross domestic product (GDP) expanded by 6.2% in the July-September quarter of 2022-23, outpacing China’s 4.9% growth during the same period. Vivek Rathi, National Director Research at Knight Frank India, commented on the unexpected 7.6% GDP growth, stating that it surpassed the RBI’s estimate of 6.5% and signals India’s resilience in the face of global economic uncertainties.
The manufacturing sector showed remarkable progress, with the gross value added (GVA) displaying a growth of 13.9% in the current fiscal quarter, compared to a 3.8% contraction in the previous year. This acceleration was also observed in the mining and quarrying sector, which saw a 10% growth from a 0.1% contraction in the same quarter last year.
The construction sector, financial, real estate, and professional services all contributed to the country’s economic growth. However, the agriculture sector experienced a slight slowdown with a GVA growth of 1.2% in the September 2023 quarter.
According to economist Madan Sabnavis, the robust growth in manufacturing and construction can be attributed to high profit gains and increased production to meet festive demand. Meanwhile, the government’s fiscal deficit reached 45% of the full-year budget estimate by the end of October.
Rumki Majumdar, Economist at Deloitte India, noted that personal consumption growth had slowed, but anticipated higher consumer spending in the upcoming quarter. The output of eight key infrastructure sectors also surged by 12.1% in October 2023, pointing to positive trends in coal, steel, cement, and electricity production.
Overall, India’s economic growth in the September quarter showcases the resilience and potential for continued expansion, fueled by various sectors despite global economic challenges. This optimistic outlook bodes well for the country’s future economic prospects.
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