GDP growth at 6.2% in October-December vs 5.6% in previous quarter—5 things to know
India’s gross domestic product (GDP) grew 6.2 per cent in the October-December period, slowing from 9.5 per cent expansion recorded in the corresponding period a year ago, according to official data released on Friday.
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08:41 PM IST
India’s gross domestic product (GDP) grew 6.2 per cent in the October-December period, as against 5.6 per cent in the previous quarter and 9.5 per cent in the corresponding third quarter of the previous financial year, according to official data released on Friday. That was marginally below most economists' expectations though higher than the expansion rate recorded in the previous three months.
A broad-based pickup in economic activity supported growth in the third quarter of the current financial year.
Here are five key things to know about this news:
- The Q3 reading was lower than the Reserve Bank of India's estimate of 6.8 per cent.
- India's GDP growth picked up from 5.6 per cent growth recorded in the fiscal second quarter, driven by a rise in government and consumer spending.
- In gross value added (GVA) terms—an alternative measure of economic activity, the country's GDP growth stood at 6.2 per cent, rising from a revised 5.8 per cent reading recorded in the previous quarter.
- Full-year GDP Forecast Raised: The Narendra Modi 3.0 government raised its full-year growth forecast by 10 basis points (bps) to 6.5 per cent from 6.4 per cent for the current financial year.
- The latest GDP data comes weeks after the RBI announced its first rate cut in almost five years.
Image: Ministry of Statistics & Programme Implementation
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"India’s private consumer spending in Q3 rose 6.9 per cent, up from 5.9 per cent in Q2, because of improved rural consumption following a good monsoon, moderating food prices, and higher government spending by Centre and states) on capital and revenue expenditure, high growth in services exports, a turnaround in merchandise exports, healthy output of major kharif crops, etc.," said Dr Manoranjan Sharma, Chief Economist at Infomerics Ratings.
"Some consumer-focused sectors gained steam during the festive season. But urban consumer sentiment continued to be muted. Other sectors, such as mining and electricity improved after weather-related challenges in the previous quarter," he added.
With inputs from agencies
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