India's July-September quarter GDP grew 7.6%

Asia's third-largest economy expanded 7.6 per cent in the September quarter,sharply higher than the Reserve Bank of India’s forecast of 6.5 per cent, on the back of better-than- expected growth in manufacturing and construction sectors, as per official data released on Thursday.The July-September period growth of the current fiscal is sharply higher than 6.2 per cent expansion posted in the same period of last year. However, it is marginally lower than 7.8 per cent GDP growth recorded in the first quarter of the current fiscal, according to sources.India’s real GDP or GDP at constant (2011-12) prices rose to Rs 41.74 lakh crore in the second quarter of the current financial year as against Rs 38.78 lakh crore recorded in the corresponding period the last year, data released by the National Statistical Office (NSO) showed.Low inflation played a significant role in boosting the real GDP growth as growth in nominal GDP during the period under review was sharply lower than the corresponding period of the last year, believe economists.The GDP growth numbers for Q2 display the resilience and strength of the Indian economy in the midst of such testing times globally," PM Modi wrote on X.

The GDP growth numbers for Q2 display the resilience and strength of the Indian economy in the midst of such testing times globally. We are committed to ensuring fast paced growth to create more opportunities, rapid eradication of poverty and improving ‘Ease Of Living’ for our…

— Narendra Modi (@narendramodi) November 30, 2023

However, agriculture sector growth slowed to 1.2 per cent in July- September quarter from 3.5 per cent recorded in the previous quarter, according to reports. "The sharp upside surprise to the Q2 GDP figures is a welcome sign especially as it comes in the backdrop of a broad-based pickup across most non- agricultural sectors," said Upasna Bhardwaj, Chief Economist at Kotak Mahindra Bank.

(Ira Singh, Asstt Editor)