India’s Economy Grows 7.6% in Q2, Manufacturing and Services Sectors Drive Growth
India’s economy expanded 7.6% in the September quarter of the fiscal year, making it the fastest-growing large economy, according to government data released on Thursday. This growth was mainly driven the manufacturing, mining, and services sectors.
The Gross Domestic Product (GDP) grew 6.2% in the July-September quarter of 2022-23. In comparison, China posted a 4.9% growth during the same period.
“The 7.6% GDP growth in the September quarter has far exceeded the RBI’s 6.5% estimate for the period, ensuring that India remains on the growth path despite multiple global headwinds,” said Vivek Rathi, National Director Research at Knight Frank India.
The manufacturing sector showed significant improvement, with the Gross Value Added (GVA) growing 13.9% in the second quarter of the fiscal year. Additionally, the mining and quarrying sector also accelerated, recording a growth rate of 10%.
Meanwhile, the agriculture sector’s GVA growth decelerated to 1.2% in the September 2023 quarter from 2.5% a year ago. However, the financial, real estate, and professional services sectors also saw some growth, albeit at a lower rate.
The output of eight key infrastructure sectors jumped 12.1% in October 2023, a significant increase from the 0.7% expansion in the year-ago period. This was driven a sharp uptick in production of coal, steel, cement, and electricity, according to official data.
The government’s fiscal deficit at the end of October touched 45% of the full-year budget estimate, as reported the Controller General of Accounts (CGA).
Overall, India’s economic growth in the latest quarter demonstrates the resilience of its various sectors, with manufacturing and services leading the way despite global economic uncertainties.