INDIA'S Q1 GDP SURGES TO 7.8%, ECONOMISTS PEG 6-6.2 % FOR FY24

Underlining resilience amidst stubborn global headwinds, India’s real gross domestic product (GDP) growth rose to 7.8 percent on-year in the first quarter of fiscal 2024, the fastest pace in a year, maintaining the strong momentum witnessed in the final quarter of FY23, as private consumption accelerated and investment growth remained high, as per estimates for the April-June quarter (Q1) of 2023-24, by the National Statistical Office

- NIVEDITA MUKHERJEE

Economists and market analysts are more or less unanimous that the Indian economy’s growth spurt at the start of the new fiscal year was propelled by strong domestic demand, which offset headwinds from a weaker external environment. The Government is optimistic of a 6.5 per cent growth in the current fiscal amidst deficient rain and underlying concern over food price developments.

The higher growth which was domestically driven, towers above the growth rate in several other leading economies and reaffirms two key aspects of the Government’s overall macroeconomic management — India’s overall macroeconomic stability and growth prospects. The growth in Q1 rides, according to V Anantha Nageswaran, Chief Economic Adviser (CEA), “on the shoulders of a boost in capital expenditure both at central and state levels, along with stronger consumption demand, especially in rural areas, and improved performance in the services sector”. Dharmakirti Joshi, Chief Economist, CRISIL finds no surprise in the data for the April-June quarter.