India economy growth 8.4% in Q3, FY24 growth estimates up to 7.6%!

India economy showed a an enormous growth rate of 8.4% in the quarter 3 for the year 2024.

In the third quarter of FY24, India economy surpassed expectations, sprinting ahead at a remarkable 8.4% growth rate. What backs this growth? It’s a combination of two key factors: robust tax collections and efficient subsidy management.

The National Statistical Office (NSO) took a fresh look and revised the FY24 growth estimate upward to 7.6%. How did they do it? By making some adjustments based on the previous fiscal year (FY23).

India’s nominal GDP projection is at a whopping US$ 3.732 trillion. Impressive, right? This optimistic outlook sets the stage for the government’s ambitious goal: a revised fiscal deficit target of 5.8% of GDP for FY24.

What’s behind this surge? Despite a slight dip in farm output, the manufacturing and services sectors flexed their muscles, showing robust growth. Manufacturing even managed to maintain double-digit growth for two consecutive quarters. 

Private consumption remained a bit sluggish while the government tightened its belt, leading to a contraction in government spending. Moreover, exports  contributed well, showing positive growth. 

In short, the sudden surge in India economy is because of proper fiscal management and strategic investment.

Notable Points: Growth In India Economy

1. India economy boosted by an impressive 8.4% growth rate in the third quarter. This exceeded economists’ predictions while surpassing Reserve Bank of India’s projection of 6.5%.
2. The National Statistical Office (NSO) reevaluated the FY24 growth estimate, pushing it up to 7.6% (from the previous estimate of 7.3%). This adjustment was influenced by a downward revision of the FY23 growth estimate from 7.2% to 7%.
3. The average GDP growth for the first three quarters of FY24 stands at 8.2%.
4. India’s nominal GDP(Gross Domestic Product) projection for FY24 is Rs 294 trillion which equals US$ 3.55 trillion. 
5. At basic prices, GVA (Gross Value Added) remained steady at 6.5%, aligning with analysts’ expectations. 
6. Trade, hotels, transport, financial services, real estate, and public administration altogether contributed to around 7% during Q3FY24, playing a pivotal role in driving overall economic growth.

Disclaimer: The above information is a result of secondary research and Axpert Media is not responsible for errors in the same.