Higher than the predictions made earlier

India’s Gross Domestic Product (GDP) growth rate in the quarter ending December 31, 2023 (Q3FY24) was 8.4 per cent, according to the data released by the Centre today. This figure is higher than the Reserve Bank of India’s (RBI’s) estimate of 6.5 per cent, as per the National Statistical Office (NSO) of Ministry of Statistics and Programme Implementation (MoSPI).

Indian economy remained resilient with robust 7.6 per cent growth rate of GDP in FY 2023-24 over and above 7 per cent growth rate achieved in FY2022-23.

The main reasons for this boost are double-digit growth rate of construction sector (10.7 per cent), followed by a good growth rate of Manufacturing sector (8.5 per cent).

Earlier, India Ratings and Research had predicted that the growth rate in the quarter would be 6.5 per cent while the SBI Research had said that the growth would be between 6.7- 6.9 per cent. 

Riding on a double-digit growth in manufacturing sector (11.6 per cent) sector, followed by a good growth rate of Construction sector (9.5 per cent), Real GDP grew by 8.4 per cent in Q3 of FY 2023-24.

RBI Governor makes his forecast on economic outlook

During his RBI Monetary Policy Committee (MPC) announcement earlier this month, Governor Shaktikanta Das had said that headwinds from geopolitical tensions, volatility in international financial markets and geoeconomic fragmentation are likely to keep posing risks to the economic outlook.