In a stunning twist that defies all expectations, an impressive 7.6% surge in the GDP in the second quarter of the financial year has catapulted the Indian economy to the forefront of global growth. The unprecedented growth in the manufacturing and construction sector has accelerated India’s economic engine, painting a promising picture for the nation’s financial landscape.
According to the GDP data released by the Ministry of Statistics on November 30, the Indian economy grew 7.6% in the July-September quarter of the current financial year 2023-24. This remarkable achievement follows closely on the heels of a robust performance in the initial quarter of the fiscal year, where the GDP soared to a commendable 7.8% from April to June.
What Led To The Surge in GDP?
- The upswing in GDP was fueled by government expenditure and a strong showing in the manufacturing, mining, and construction sectors, cementing India’s position as the world’s fastest-growing major economy. The manufacturing sector emerged as the primary growth driver, registering a remarkable 13% expansion, reaching ₹7.15 lakh crore.
- Simultaneously, the mining and quarrying sector exhibited a strong performance with a healthy growth rate of 10%.
- As per the data unveiled by the National Statistical Office (NSO), the robust expansion was propelled by increased profits among listed companies, driven by volume growth and improved profit margins from sustained deflation in input prices.
- The construction sector’s resilient performance was attributed to significant capital expenditure by the central and state governments, illustrating a front-loading strategy.
- Both the electricity and construction sectors demonstrated notable double-digit growth figures, with the former surging by 10% and the latter experiencing a substantial growth of 13.3%.
The Indian economy reached ₹41.74 lakh crore, marking a substantial increase of approximately ₹3 lakh crore from the corresponding period in the previous fiscal year, which witnessed a growth rate of 6.2%, as reported by the Ministry of Statistics and Programme Implementation by the end of the second quarter.
This notable surge in economic value underscores the robust momentum and considerable expansion experienced during the current financial quarter, further solidifying India’s position as a dynamic force in the global economic landscape.
The Reserve Bank of India (RBI) forecasted GDP growth of 6.5% for the second quarter, a 7.6% growth rate displaying the resilience and strength of the Indian economy amid such testing times globally.
This sustained momentum underscores India’s unwavering commitment to surpassing its milestones and showcases its remarkable prowess in navigating and rebounding from unprecedented challenges. The trajectory is set, and the future holds the promise of even greater economic prosperity and resilience for India on the global stage.
I’m Archana R. Chettiar, an experienced content creator with
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