India’s Economy Grows at 7.6% in September Quarter, Manufacturing, Mining, and Services Sectors Contribute to GDP Growth
India’s economy grew at 7.6% in the September quarter of this fiscal year, making it the fastest-growing large economy, according to government data released on Thursday. The growth was primarily attributed to the better performance of the manufacturing, mining, and services sectors.
The gross domestic product (GDP) expanded by 6.2% in the July-September quarter of 2022-23, surpassing China’s growth rate of 4.9% during the same period. Vivek Rathi, National Director Research at Knight Frank India, stated that the 7.6% GDP growth exceeded the Reserve Bank of India’s estimate of 6.5%, showcasing India’s resilience despite global economic and geopolitical uncertainties.
In particular, the manufacturing sector showed significant improvement, with a gross value added (GVA) growth rate of 13.9% in the second quarter of the current fiscal year, compared to a 3.8% contraction in the previous year. The mining and quarrying sector also experienced an acceleration in growth to 10%, while electricity, gas, water supply, and other utility services grew by 10.1%.
On the other hand, the agriculture sector’s GVA growth decelerated to 1.2% from 2.5% a year ago, attributed to seasonal effects. The construction sector, financial, real estate, and professional services also saw varying levels of growth.
Looking ahead, analysts expect increased consumer spending in the upcoming festive months, indicating a potential turnaround in personal consumption growth. Additionally, the government’s fiscal deficit at the end of October reached 45% of the full-year budget estimate, reflecting the economic landscape.
Moreover, the output of eight key infrastructure sectors in India jumped by 12.1% in October 2023, compared to a 0.7% expansion in the previous year. This surge was driven by increased production of coal, steel, cement, and electricity, highlighting positive trends in the country’s industrial output.
The comprehensive data from the National Statistical Office (NSO) and expert commentary shed light on how India’s economy is navigating the global economic landscape and internal sectoral dynamics. As the economy continues to evolve, it remains essential to monitor its performance across different sectors and key economic indicators.
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