India’s GDP grows at 6-quarter high of 8.2%

The Indian economy continues to surprise positively.

- Roshan Kishore and Rajeev Jayaswal

After months of inflation ending up lower than expected, it is now GDP’s turn. Gross Domestic Product (GDP) growth in the quarter ending September came at 8.2%, 80 basis points - one basis point is one hundredth of a percentage point ~ higher than the number predicted by a Bloomberg poll of economists, on the back ofa strong all-round showing. This is also the highest quarterly GDP growth in six quarters. Growth for the first half of the fiscal year now stands at 8%, the highest in three years.

While there are some statistical and cyclical factors at play, the numbers underline the dynamism in the Indian economy which continues to be the fastest growing in the world. Given the fact that the latest GDP print includes only nine days with lower Goods and Services Tax (GST) rates, the consumption tailwinds from lower taxes are yet to show in the data. And if RBI does bring down interest rates in its December meeting, ‘one can hope to see an additional impetus to growth going forward.

Prime Minister Narendra Modi called the GDP growth “very encouraging”.

Ease of Living for every citizen,” he said on X.

Union finance minister Nirmala Sitharaman said the numbers underlined the Indian economy's momentum.