FY 2024 GDP GROWTH SEEN UP AT 7.6%

The Indian economy is on a bull run, with its gross domestic product (GDP) roaring ahead in the October-December period or the third quarter of financial year 2023-24 (Q3FY24) to post a real growth of a high 8.4 percent year-on-year, showing no signs of a slowdown amid geopolitical conflicts, rather exceeding expectations yet again

- NIVEDITA MUKHERJEE

If the defying 8.4 percent growth was the first surprise, revised growth of the past two quarters also underlined India's resilience with India's Q2 growth demonstrating an uptick of 8.1 percent from 7.6 percent and Q1 growth at 8.2 percent from the earlier projection of 7.8 percent.

With this the fiscal 2024 growth of the country too is projected upwards. The National Statistical Office (NSO) in its second advance estimates (SAE) pegs FY2023-24 GDP growth at 7.6 percent compared with 7.3 percent previous fiscal.

However, Nomura Ratings flags headwinds, including the impact of the general election code of conduct on public capex support, patchy recovery in private capex, weak state of consumption, and ebbing terms of trade advantage for corporates as input costs rise.

A more or less wide expectation was emerging through Sunday Guardian's interaction with economists and industry, of the GDP firing anywhere in the range of 6.3 percent with a minimum and maximum growth estimate of 6.0 percent and 6.6 percent respectively, as per FICCI outlook while "India's economy has become more robust and resilient and growth is strengthening quarter after quarter; the Q3 growth at 8.4 percent indicates a strong growth trajectory to continue in the coming quarters too," says SP Sharma, lead economist PHD Chamber of Commerce & Industry.