India's economy sprang a surprise with an 8.4 per cent surge in GDP growth during the third quarter (October-December), as a result of which the country's economic growth rate for the financial year 2023-24 is now estimated at a robust 7.6 per cent, figures released by the National Statistics Office on Thursday showed.
The high growth rate of 8.4 per cent in the October-December quarter has been driven by a double-digit growth in manufacturing sector of 11.6 per cent, followed by a good growth rate of construction sector (9.5 per cent).
"The Indian economy remained resilient with robust 7.6 per cent growth rate of GDP in FY 2023-24 over and above 7 per cent growth rate in FY 2022-23," the Ministry of Statistics said.
Double-digit growth rate of construction sector at 10.7 per cent, followed by a good growth rate of manufacturing sector of 8.5 per cent boosted the GDP growth in FY 2023-24, according to it.
The Ministry of Statistics has also revised the growth rate for Q1 of the current financial year to 8.2 per cent from the earlier estimate of 7.8 per cent and the growth rate for Q2 from 7.6 per cent to 8.1 per cent after receiving the latest updated figures.
The Advance Estimates of National Income are indicator-based and are compiled using the benchmark-indicator method i.e. the estimates available for the previous year (2022-23) are extrapolated using the relevant indicators reflecting the performance of sectors. The First Advance Estimates (FAE) for 2023-24 were based on very limited data and by using Provisional Estimates of 2022-23 as benchmark estimates, according to the official statement.
For compilation of the Second Advance Estimates (SAE) 2023-24, the Provisional Estimates of 2022-23 used at the time of FAE have been replaced by First Revised Estimates (FRE) 2022-23 which have been compiled using industry-wise/institution-wise detailed information.
Thus, variations in the SAE from the FAE is attributed to revision of benchmark estimates and additional data available on various indicators like CPI, IIP, Revised Estimates of fiscal data, financial results of listed companies etc. used for compiling the estimates for 2023-24.
The quarterly estimates of previous years along with the first and second quarter estimates of 2023-24 released earlier have also undergone revision in accordance with the revision policy of National Accounts, the Ministry’s statement added.
The latest data show that India is keeping up its growth momentum as the world’s fastest-growing economy that is seen as a bright spot amid the global slowdown.