India’s Economy Surges Ahead with 7.6% GDP Growth in Q2 FY24

New Delhi, India (November 30, 2023) – India’s economy continued its robust growth trajectory, expanding at a remarkable 7.6% year-on-year in the second quarter of the current financial year (Q2 FY24), cementing its position as the fastest-growing major economy in the world. This impressive growth rate, released by the Ministry of Statistics and Programme Implementation, exceeded market expectations and surpassed the Reserve Bank of India’s (RBI) projection of 6.5%.

The strong economic performance was driven by a broad-based resurgence across various sectors. The manufacturing sector, a key indicator of economic activity, witnessed a robust expansion of 13.9%, while construction and trade, hotels, and transport also recorded significant growth. Private consumption, a crucial driver of economic demand, remained resilient, indicating the improving purchasing power of Indian households.

Key Highlights of India’s GDP Growth Report

• India’s GDP grew by 7.6% in Q2 FY24, compared to 6.2% in the same quarter of the previous financial year.
• The manufacturing sector expanded by 13.9%, construction grew by 11.5%, and trade, hotels, and transport increased by 10.2%.
• Private consumption remained strong, indicating the improving purchasing power of Indian households.
• India retains its position as the fastest-growing major economy in the world.

Implications of India’s GDP Growth

India’s impressive GDP growth in Q2 FY24 underscores the resilience and strength of the Indian economy amidst global challenges. The robust performance is expected to have a positive impact on job creation, income growth, and overall economic well-being. Moreover, India’s position as the fastest-growing major economy is likely to attract foreign investment and boost investor confidence.

Looking Ahead

While the Indian economy is on a strong footing, there are certain challenges that need to be addressed to sustain its growth momentum. These include managing inflation, addressing supply chain disruptions, and ensuring fiscal consolidation. The government’s continued focus on infrastructure development, reforms, and promoting ease of doing business will be crucial in maintaining India’s growth trajectory and achieving its long-term economic goals.