India's GDP grows by 8.4% in October-December quarter
The Union Ministry of Statistics and Programme Implementation has revealed the gross domestic product (GDP) figures for the October-December quarter. India's economy grew at a rate of 8.4% in Q3, which is up from economists' estimates of 6.5%. To recall, the figure stood at 7.6% in the previous quarter. The government has also pegged FY24 growth at 7.6%.
What propelled the economy's growth?
The Q3 GDP rise was due to double-digit growth in the manufacturing category (13.9%), with construction trailing behind (9.5%). However, the agriculture sector's gross value added (GVA) went down by 0.8%. The overall GVA rise in October-December 2023 was 6.5%. That's down from 7.7% in July-September. The full-year GVA rise is pegged at 6.9%, up from 6.7% in 2022-23.
India ahead of major world economies
In FY24, the Indian economy is expected to outperform major economies of the world. They include China (4.6%), the US (2.1%), France (1%), Japan (0.9%), the UK (0.6%) and Germany (-0.5%). India continues to be the fastest-growing economy this quarter.
Fiscal deficit and tax collections
The Centre's fiscal deficit in April 2023-January 2024 climbed to Rs. 11.03 lakh crore. This is higher than the Rs. 9.82 lakh crore in April-December. For April 2023-January 2024, tax collections were up 11% YoY at Rs. 18.8 lakh crore. Personal income tax is 27% higher than last year (Rs. 7.48 lakh crore), while corporate tax has climbed by 20% (Rs. 7.56 lakh crore).
A look at the Centre's expenditure
When it comes to spending, January witnessed the Centre's expenditure decline by 14% to Rs. 3.01 lakh crore, with capital expenditure down 41%YoY at Rs. 47,557 crore. The total expenditure for the first 10 months of 2023-24 was Rs. 33.55 lakh crore. This is up 6% YoY. Meanwhile, capex has climbed 27% to Rs 7.21 lakh crore.
