Indian economy grew faster than expected in Q2
NEW DELHI: The Indian economy grew faster than expected in the July-September quarter at 7.6 percent, official data released on Thursday showed.
India Prime Minister Narendra Modi (C) and British Prime Minister Rishi Sunak (L) listen to World Bank President Ajay Banga during the Transforming Climate Finance session at the United Nations climate summit in Dubai on December 1, 2023. World leaders take centre stage at UN climate talks in Dubai on December 1, under pressure to step up efforts to limit global warming as the Israel-Hamas conflict casts a shadow over the summit. (Photo by Ludovic MARIN / AFP).
“The GDP growth numbers for Q2 display the resilience and strength of the Indian economy in the midst of such testing times globally,” Prime Minister Modi said in a statement. “We are committed to ensuring fast paced growth to create more opportunities, rapid eradication of poverty and improving ‘Ease Of Living’ for our people.”
The economy had recorded 7.8 percent growth for the last quarter, from April to June. Last month, the World Bank said India will stay on track as one of the world’s fastest-growing economies thanks to strong domestic demand and investment helping it weather inflation and challenging global conditions.
Like other countries, India has been buffeted by global headwinds including tightening financial conditions and the effects of the war in Ukraine on global food and oil markets. Its economy nonetheless grew 7.2 percent in the last financial year, the second-highest among G20 countries.
As per World Bank estimates, India’s GDP growth for the current financial year stood at 6.3 percent.
India overtook Britain last year to become the world’s fifth-largest economy and recently surpassed China to become the most populous country.
The South Asian country continues to be one of the fastest growing major economies, amid western economies being squeezed by high interest rates and energy prices, and a slowdown in China.
The pace of growth was slightly slower than the 7.8 percent expansion India’s economy saw in the previous quarter, helped by the comparison with a lower base the previous year.
The manufacturing sector, which for the past decade has accounted for just 17 percent of the economy, expanded 13.9 percent year-on-year in the September quarter, compared with a revised 4.7 percent in the previous three months. — AFP.
