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Business News/ Economy / India Q3 GDP data Highlights: Indian economy grows by 8.4% in Dec quarter driven by construction, manufacturing sector
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India Q3 GDP data Highlights: Indian economy grows by 8.4% in Dec quarter driven by construction, manufacturing sector

India Q3 GDP data Highlights: Indian economy grew by 8.4% during the October-December quarter of FY 24, according to the quarterly estimates of India's GDP in Q3 FY24. The GDP numbers have surpassed the economists expectation who predicted a contraction from the previous quarter

India Q3 GDP data Highlights: The Gross Domestic Product data for October-December quarter of fiscal 2023-24 (Q3FY24) was released by the Statistics Ministry on ThursdayPremium
India Q3 GDP data Highlights: The Gross Domestic Product data for October-December quarter of fiscal 2023-24 (Q3FY24) was released by the Statistics Ministry on Thursday

India Q3 GDP data Highlights: The Indian economy grew by 8.4% during the October-December quarter of FY 24, according to the GDP data of India for the third quarter of Financial Year 2023-24, released by the Statistics Ministry on February 29. 

India’s economic growth during the December quarter has emerged as a surprise for economists who were expecting a contraction in its growth due to a nominal decline in government spending, slow growth of the industrial output, and an uneven monsoon in the third quarter. However, a strong construction and manufacturing sector helped the nation in outperforming the experts' expectations.

According to Mint’s poll, based on the inputs of 17 economists, the GDP growth rate is likely to remain at 6.64% in Q3 FY 24, lower than the 7.6% reported in the previous quarter by the statistics ministry.

Despite strong GDP growth, muted private consumption growth at 3.6 per cent, remained an area of concern in the context of high GDP growth, according to some economists. Hailing the GDP numbers, PM Modi said that his government will continue to strive to keep fast economic growth.

"Robust 8.4 per cent GDP growth in Q3 2023-24 shows the strength of the 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!" PM Modi wrote in his recent post on X.

Commenting on the GDP numbers, the Chief Economic Advisor,  V Anantha Nageswaran,  said that the GDP numbers remained strong. At the same time, he noted that while growth prospects appear bright external factors pose a downside risk.

"So the actual performance of the economy has continued to defy expectations and do better than what many had projected underscoring the fact that a structural transformation of the economy is indeed underway, both in terms of physical infrastructure and digital infrastructure as well as inclusion agenda, boosting the purchasing power of Indian households...," he told reporters during a media briefing on Thursday. 

Here are the top highlights of the GDP data released on Thursday, Feb 29, 2024

-India’s GDP grows at 8.4% during Q3 FY24

Beating the market estimates and the Reserve Bank of India’s projections, India’s GDP expanded at the rate of 8.4% during the third quarter of Financial Year 2023-24

-Revised estimate for GDP growth rate in FY 24

According to the second advance estimate of national accounts, the Statistics Ministry, India’s full-year GDP growth rate was fixed at 7.6% from 7.3%. The increased revised advanced estimates aside from the impact of slower growth in consumer spending and government expenditure. In addition to this, the NSO also revised the GDP growth for 2022-23 to 7 per cent against the earlier estimate of 7.2 per cent. 

-Manufacturing, construction top performing sectors

India’s GDP growth was fuelled by strong performance of the manufacturing and construction sectors of the country. "Double-digit growth in the manufacturing sector, followed by a good growth rate of construction sector" were responsible for the better-than-expected performance, said the NSO.

The manufacturing sector expanded 11.6% annually in the third quarter, whereas the construction sector grew by 9.5%.

-Agriculture sector emerges as the weakest sector

Falling on expected lines, India’s agriculture sector contracted by 0.8% in the December quarter. The sector had witnessed a growth of 1.6% during the previous quarter. Whereas, the growth rate stood at 5.2% during the same quarter in the previous financial year. The slump in the agriculture sector was the result of poor monsoon conditions and El-Nino impact. However, prospects of healthy rabi harvesting, and expectations of the fading away of El Nino and the forecast of a normal monsoon bodes well for a better-than-normal kharif sowing, said CEA Nageswaran.

-Increase in private consumption, decline in government spending

The GDP numbers revealed a contraction in the government consumption to 3.2 per cent during the Q3 FY 24. The private consumption in the sector rose 3.5% in the December quarter from a year earlier.

-Decline in exports and imports 

There was a marginal decline in the share of exports in GDP during the December quarter. The share stood at 22.2% during the quarter, declining from 23.3% in the same quarter of previous year. At the same time, there was a decline in the share of imports in the GDP which stood at 24% during the quarter compared to 27.5% during the previous quarter.

-Marginal decline in Gross fixed capital formation 

There was a marginal decline in the gross fixed capital formation (GFCF), an indicator of the level of investments in the country during the December quarter of FY24. However, it picked up pace at 32.4% on an annual basis in the December quarter. 

29 Feb 2024, 08:55:48 PM IST

India Q3 GDP data Live: Government spending contracts by 3.2% 

India Q3 GDP data Live: Government expenditure contracted 3.2 per cent during the December quarter, whereas, the private consumption increased by 3.5% during the quarter, revealed the recent GDP data numbers.

29 Feb 2024, 08:27:44 PM IST

India Q3 GDP data Live: Exports predicted to increase 1.5% in rupee terms 

India Q3 GDP data Live: According to the recent GDP data, exports are now predicted to increase 1.5% in rupee terms from the previous year. The imports is expected to grow at 10.9% annual growth. Earlier, the forecast for the sector was 1.39% growth in exports and 13.1% in imports.

29 Feb 2024, 08:09:56 PM IST

India Q3 GDP data Live:  Export expenditure estimates stands at 22.2% in Q3 FY24

India Q3 GDP data Live: India’s export expenditure estimates, released by the NSO for the October-December quarter came in at 22.2%. During the previous quarter, the expenditure on the export sector stood at 23.9%.

29 Feb 2024, 07:42:05 PM IST

India Q3 GDP data Live:  Trade, hotels, transport services sector grew by 6.7% in Q3 FY 24

India Q3 GDP data Live: The quarterly estimates of the GVA at basic price for the trade, hotels, transport, communications and services sector stood at 6.7 %. During the previous quarter, the sector grew at 4.5%. Whereas, it witnessed a growth of 9.2% in Q3 FY23

29 Feb 2024, 07:23:54 PM IST

India Q3 GDP data Live: GDP data indicates that investment growth continues to outpace consumption growth by huge margin 

India Q3 GDP data Live: "Real GDP growth in 3QFY24 was much ahead of expectations at 8.4%. However, much of the upside surprise was from net taxes. The underlying production growth reflected in GVA growth was closer to expectations at 6.5%. Broadly, GDP data indicated that investment growth continues to outpace consumption growth by a huge margin. Households savings rate dipped in FY2023 led by lower financial savings rate compared to FY2022. As expected, physical savings rate increased marginally. For policy makers, the concern on growth will remain minimal for now with growth staying on a decently strong footing," said  Suvodeep Rakshit, Senior Economist of Kotak Institutional Equities.

29 Feb 2024, 07:10:54 PM IST

India Q3 GDP data Live: Construction, manufacturing sector not only bolster economy, but also contribute to real estate market’s dynamism, says CBRE’s Anshuman Magazine

India Q3 GDP data Live: India’s robust GDP growth during the December quarter has strengthened India’s position as fastest-growing major economy globally. The growth trajectory is also the testament to India’s economic resilience and its capacity for sustained development, according to Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE.

“The manufacturing sector, with an impressive double-digit growth rate, alongside the construction sector, which saw a healthy growth rate of 9.5%, were pivotal. These sectors not only bolster the economy but also significantly contribute to the real estate market's dynamism.  The growth in construction indicates a robust demand for residential and commercial spaces, underscoring a vibrant real estate market," said Anshuman Magazine.

29 Feb 2024, 06:58:51 PM IST

India Q3 GDP data Live: PM Modi hails GDP numbers, says, ‘Q3 FY 24 show strength of Indian economy…’

India Q3 GDP data Live: “Robust 8.4% GDP growth in Q3 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!," said PM Modi in his post on X.

29 Feb 2024, 06:46:09 PM IST

India Q3 GDP data Live: India’s GDP growth rate of 8.1% reflects strong economic momentum volatile global economic landscape

India Q3 GDP data Live: Calling the upward revision in the quarterly estimates of India’s GDP numbers a reflection of strong economic momentum, Vivek Rathi, National Director Research, Knight Frank India, said, “The upward revision of FY24 economic growth to 7.6% indicates a very strong economic momentum, especially when the current global economic landscape is still volatile. The push to the economic growth has primarily come from investments, i.e. 12.2% growth in Gross Capital Formation (GCF). This suggests a shift in the economic landscape, where investments are gaining momentum."

Vivek Rathi highlighted the importance of the current GDP numbers in the revival of the Capital Expenditure (CapEx) cycle in the economy, which, in turn, supports long-term growth.

“Besides agriculture, all segments of the economy are operating well. Notably, industry (10.4%), manufacturing (11.6%), and construction (9.5%) sectors have been the key drivers of economic growth during Q3 FY24," Rathi added.

29 Feb 2024, 06:36:51 PM IST

India Q3 GDP data Live: Mining and Quarrying sector estimated to grow by 8.1% in FY 24 

India Q3 GDP data Live:  The Mining and Quarrying sector is estimated to grow by 8.1% during FY 24. The sector witnessed a growth of 1.9% in the previous financial year 

29 Feb 2024, 06:23:01 PM IST

India Q3 GDP data Live: Gross Domestic Product at constant prices came in at ₹43.72 lakh crore

India Q3 GDP data Live: GDP at constant prices during the third quarter of FY 23-24 was at 43.72 lakh crore, against 40.35 lakh crore in Q3 of FY 23, showing a growth rate of 8.4 percent. GDP at Current Prices in Q3 of 2023-24 is estimated at 75.49 lakh crore, as against 68.58 lakh crore in Q3 of 2022-23, showing a growth rate of 10.1 percent.

29 Feb 2024, 06:18:55 PM IST

India Q3 GDP data Live: Construction sector attains double-digit growth rate

India Q3 GDP data Live: Construction sector attained a double-digit growth rate of 10.7% during the third quarter of FY 24. Strong growth in construction was complemented by a boost in manufacturing sector growth of 8.5% in Q3 FY24.

29 Feb 2024, 06:09:24 PM IST

India Q3 GDP data Live: India’s GDP growth rate during Q3 FY 23 stood at 4.4%

India Q3 GDP data Live: During the third quarter of the previous financial year (Q3 FY 23), the Indian economy registered a growth of  4.4%.

29 Feb 2024, 06:05:37 PM IST

India Q3 GDP data Live: Real GDP in FY 24 estimated to be at 172.90 lakh crore

India Q3 GDP data Live: Real GDP at Constant Prices (2011-12) in FY 23-24  is estimated to attain a level of 172.90 lakh crore, against the FRE (first revised estimates)of GDP for the year 2022-23 of 160.71 lakh crore. The growth rate of GDP during 2023-24 has been estimated at 7.6 per cent as compared to growth rate of 7 per cent in 2022-23.

29 Feb 2024, 05:59:56 PM IST

India Q3 GDP data Live: India’s economic growth surpasses economists’ expectations 

India Q3 GDP data Live: India’s economic growth in the Oct-Dec quarter surpassed the economists’ expectations who predicted contraction in the economy. According to Reuters’ poll, the economy is expected to grow 6.6% during the final three-month period last year. Whereas, the Mint poll suggested that the GDP growth rate is likely to remain at 6.64% in Q3 FY 24.

29 Feb 2024, 05:54:03 PM IST

India Q3 GDP data Live: NSO revises GDP growth for FY 23 to 7 per cent

India Q3 GDP data Live: The National Statistical Office on Thursday also revised the GDP growth for  2022-23 to 7 per cent against the earlier estimate of 7.2 per cent.

29 Feb 2024, 05:50:23 PM IST

India Q3 GDP data Live: Indian economy set to grow at 7.6% in FY 24

India Q3 GDP data Live: Indian economy is expected to grow at 7.6 per cent for 2023-24, according to the National Statistics Office’s second advance estimates of national accounts. In its first advanced estimates released in January 2024, it had projected a growth of 7.3 per cent for the current fiscal.

29 Feb 2024, 05:46:54 PM IST

India Q3 GDP data Live: Indian economy grew by 8.4 per cent in the October-December quarter

India Q3 GDP data Live: India's economy expanded 8.4% in the December quarter from a year earlier, compared with 7.6% growth in the previous quarter, government data showed on Thursday.

29 Feb 2024, 05:05:35 PM IST

India Q3 GDP data Live: Strong services exports expected to offset impact of sluggish merchandise exports, says Barclays

India Q3 GDP data Live: Despite the impact geopolitical factors like Red Sea crisis on merchandise exports, the impact is likely to be subsided by strong services exports, according to Barclays. Merchandise exports grew just 1.1% YoY in the October-December quarter.

29 Feb 2024, 04:36:43 PM IST

India Q3 GDP data Live: Services sector and private consumption to show strong growth in the quarter, predicts expert

India Q3 GDP data Live: Despite moderation in the economic growth of the country because of muted industrial and agricultural growth, Sujan Hajra, chief economist and executive director at Anand Rathi Shares and Stock Brokers, believes that the services sector is likely to witness strong growth in the third quarter.

“Services activities and private consumption are predicted to show comparatively stronger performance. Overall, for the entire year, we forecast India’s growth at around 7%, positioning it as the strongest performer among the world’s major economies," Hajra told Mint’s Payal Bhattacharya.

29 Feb 2024, 04:21:51 PM IST

India Q3 GDP data Live: GDP growth rate to remain at 6.6% in Q3 FY24, according to Mint's poll

India Q3 GDP data Live: According to Mint’s poll, India’s GDP growth rate is likely to remain around 6.6% in the October-December quarter, lower than the 7.6% witnessed in the previous quarter by the Statistics Ministry. 

29 Feb 2024, 04:04:00 PM IST

India Q3 GDP data Live: India’s GDP growth will moderate to 6 percent in Q3 FY24, says ICRA’s Aditi Nayar

India Q3 GDP data Live: Due to the lower output of kharif crops and slowdown in the industrial sector, India’s GDP growth will moderate to six per cent in Q3 FY24, Aditi Nayar, Chief Economist, Head- Research & Outreach at leading credit rating agency ICRA told Livemint in an interview.

29 Feb 2024, 03:36:38 PM IST

India Q3 GDP data Live India’s performance during the previous quarter

India Q3 GDP data Live During the previous quarter,i.e. July-September quarter, Indian economy showcased upward revisions in growth forecasts for 2023-24. 

29 Feb 2024, 03:20:07 PM IST

 India Q3 GDP data Live:India’s GDP growth rate to remain at 6.8 per cent in Q3 FY24, says SBI in its Ecowrap

India Q3 GDP data Live India’s GDP is likely to grow at the rate of 6.8 per cent, according to a research report by the State Bank of India (SBI). The report said that there are chances of the GDP growth rate to reach seven percent in case of any downward revisions in the GDP growth figures for the Q3 FY 24.

29 Feb 2024, 02:58:53 PM IST

India Q3 GDP data Live: EL-Nino impact on India's agricultural output

India Q3 GDP data LiveDue to El-Nino effect in the Pacific Ocean, India's agricultural output is likelt to suffer this year. India's agricultural output is likely to remain muted in FY 24 at 1.8 per cent year-on-year (YoY), down from four per cent growth in the previous year, according to January 2024' issue of NSE's ‘Market Pulse’ report.

El-Nino is likely impact the rural demand with the growth of private consumption to remain at a modest rate of 4.4 per cent, lower than 7.5 per cent growth in the previous year.

29 Feb 2024, 02:44:25 PM IST

India Q3 GDP data Live: GDP data to be released today

India Q2 GDP data Live: The Statistics Ministry will release the GDP data at 5:30 pm on Thursday, Feb 29, 2024. According to economists, there is expected to be a decline in GDP in October-December quarter of FY 24 from 7.6 per cent witnessed in the previous quarter.

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