India's GDP exceeds expectations with 7.8% growth in Q4
India's gross domestic product (GDP) has surpassed analysts' predictions, registering a growth of 7.8% in the final quarter of FY24, as per data from the Ministry of Statistics and Programme Implementation (MOSPI). The government now anticipates an overall growth rate of 8.2% for FY24. This robust performance is attributed to significant increases in the manufacturing and mining sectors, which grew by 9.9% and 7.1%, respectively.
Predictions surpassed: India's Q4 growth outperforms forecasts
Experts had previously forecasted a strong growth for the January to March quarter, with the Reserve Bank of India (RBI) estimating a 7% GDP growth. A Reuters poll had projected a slightly lower rate of 6.7%, citing weak demand as the reason. However, India's economy outshone these predictions, achieving a 7.8% growth in Q4 FY24. As for previous quarters, Indian economy grew 8.2% in the June quarter, 8.1% in the September quarter and 8.4% in the December quarter of 2023-24.
Service sector and public investment bolster Q4 growth
The service sector and public investment have played a significant role in boosting India's GDP growth in the March quarter. The high expectations surrounding GDP growth are linked to robust investment activity during Q4, particularly the surge in new project announcements at an investment meet held in January. Notably, some investment-related indicators showed a moderation during Q4 FY24 compared to the previous quarter. There was also an implicit slowdown in new project proposals between February and March relative to January.
