Data Point: India’s GDP Growth Data

Context: The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation released the estimates of Gross Domestic Product (GDP) for the July-September quarter (Q2) of 2023-24, both at Constant (2011-12) and Current Prices.

What is the current status of India’s GDP?

• Real GDP: India’s GDP had grown by 7.6% to attain a level of ₹41.74 lakh crore in Q2 which means that the real GDP (GDP at constant price) in Q2 of FY24 (Financial Year 2023-24) is 7.6% more than what it was in the same period of FY23.
• Nominal GDP: GDP at Current Prices in Q2 FY24 is estimated at ₹71.66 lakh crore, as against ₹65.67 lakh crore in Q2 FY23, showing a growth of 9.1%.
• The agriculture, livestock, forestry & fishing industry recorded a growth of 1.2% in Q2 FY24.
• Mining & quarrying grew 10% in Q2 FY24 against contraction of 0.1% in Q2FY23. 
• Manufacturing sector grew 13.9% after seeing a contraction of 3.8% in Q2FY23.
• Consumer demand, which is a pivotal contributor constituting about 60% of GDP growth grew 3.13%.
• Government’s final consumption expenditure grew 12.4%. 
• Exports witnessed a growth of 4.32% annually in Q2 FY24.

Significance:

• Optimistic Outlook: The impressive level of economic growth has triggered upward revisions in the GDP forecast for the full financial year. The upside growth has given hope that India’s economic recovery is now gathering momentum.

• Accuracy of RBI’s Forecast: At the start of the financial year, the Reserve Bank of India (RBI) forecasted a full-year GDP growth rate of 6.5%.
• Impact on Interest Rates: This implies that RBI may not cut interest rates sooner than expected. 

News Source: IE

Also Read: GDP Of Indian States: State-Wise GDP Of India 2023