Economic growth surges to 8.2%

IN THE FIRST half of the current fiscal, private final consumption expenditure (PFCF) marginally improved its share in nominal GDP to 61.4% over the year-ago period, and largely stuck to the average of the three years to FY25.

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Although the GST reductions for a wide variety of goods came only at the fag end of the quarter (September 22), PFCF registered an impressive 7.9% growth in real terms, though on a relatively weak base (6.4%).

The imminence of the price cuts for consumer durables and automobiles among other relatively price-inelastic items obviously did not hit the volume of transactions, ahead of the festive period. The consumption boost from the major income tax relief announced in the Budget FY26 was apparently playing out through the quarter.With items that account for a third of an average household's consumption basket witnessing GST cuts, the aggregate demand is seen to have got a fillip in the current quarter.