India's gross domestic product (GDP) growth rate for the December quarter of the fiscal year 2023-24 has astounded observers, reaching 8.4%, a figure that even the Reserve Bank of India was not expecting. Currently when eurozone economies are stagnant and China, the second-biggest economy, faces headwinds, India's growth is perhaps the only bright spot in a world racked by geopolitical tensions.
"Robust 8.4% GDP growth in the third quarter of 2023-24 shows the strength of Indian economy and its potential. Our efforts will continue to bring fast economic growth which shall help 140 crore Indians lead a better life and create a Viksit Bharat," Prime Minister Narendra Modi posted on X (formerly Twitter).
There has been considerable debate regarding the reliability of GDP data in recent quarters, with critics suggesting potential inflation through methodological jugglery.
The latest data sets have received similar criticism, with some pointing to the disparity between gross value added (GVA) and GDP.
While GDP is a measure of the total value of goods and services produced within a region's borders, GVA is the value producers add to the goods and services they buy, and thus provides an insight into the raw economic output within the country.
Mathematically, GVA is calculated by adding subsidies to the GDP and subtracting indirect taxes (GST).
In the December quarter of 2023-24, the disparity between India's GDP and GVA figures reached a 10-year high. During the recent quarter, while India recorded a GDP growth rate of 8.4%, its GVA grew by only 6.5%-reflecting a significant divergence of 190 basis points.
"The wide gap [between GVA and GDP numbers] follows from a surge in growth of net indirect taxes to a six-quarter high of 32% in this quarter, which is unlikely to be sustainable," says Aditi Nayar, chief economist at ratings agency, ICRA.
Diese Geschichte stammt aus der April 2024-Ausgabe von Outlook Business.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der April 2024-Ausgabe von Outlook Business.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
'Automation is Redefining Efficiency and Precision in Jewellery Manufacturing'
Increasing brand consciousness and awareness among consumers is helping expand the organised jewellery retail industry. MP Ahammed, chairman of Malabar Group, discusses prominent trends in the jewellery industry
BATTLE TO WIN THE AI RACE
In Supremacy, Parmy Olson tells the astonishing and behind-the-scenes story of the battle between the world’s two leading artificial intelligence firms, OpenAl and DeepMind and the continuing rivalry of its founders Sam Altman and Demis Hassabis respectively
A LEADER WHO EMPOWERS
Anshul Arzare, MD and CEO of YES SECURITIES, wants to ensure a workplace where employees not only contribute to the company's vision but also feel content
EV Unplugged
Electric vehicles are crucial to India’s climate change plan. But reliance on China for imports and technology constraints remain hurdles the sector needs to overcome
Every Lamborghini Owner is a Brand Ambassador
Regional director of Automobili Lamborghini, Francesco Scardaoni, talks to Prachi Khanna about the brand’s approach to fostering a sense of community among its vehicle owners. Edited excerpts
NO ZEST FOR ZED
A government initiative to green MSMEs is not finding enough takers
SMALL PLANTS, BIG TROUBLE
Climate-triggered stress is placing an unprecedented burden on small businesses. But a lack of access to climate aid hinders the sector's ability to adopt greener methods
'We Think About the Rider More Than Any Other Company
Rapido co-founder Aravind Sanka talks to Neeraj Thakur and Deepsekhar Choudhury about how flexibility and fair pay helped his company disrupt the Ola-Uber duopoly. Edited excerpts
LABOUR PANGS
Rising cost of living in a fast-growing economy is making workers restless
'Hustle is No Virtue'
It has become fashionable to talk about the verb “hustle” these days, especially in professional settings.
