Gross domestic product (GDP) growth has increased to 8.4% in the October-December quarter (Q3 2023-24) of the financial year 2023-2024. GDP has increased due to better performance of manufacturing and mining sectors. The National Statistical Office (NSO) has released these figures today i.e. on Thursday.
GDP was 7.6% in the last quarter. The higher-than-expected growth was driven by strong urban consumption, manufacturing and higher government spending. Whereas a year ago, i.e. in the third quarter of 2022-23, GDP had grown by only 4.5%. GDP growth is better than RBI’s estimate. RBI had estimated GDP growth to be 6.5% in the third quarter.
Manufacturing growth increased to 11.6%
- Mining growth increased from -1.4% to 7.5% YoY.
- Manufacturing growth slowed to 11.6% from -4.8% on an annual basis.
- Construction growth remained unchanged at 9.5% on an annual basis.
Fiscal deficit: ₹8.04 lakh crore, reached 45% of the target
On the other hand, from April to October the fiscal deficit budget increased to Rs 8.04 lakh crore. This is 45% of the budget estimate. The fiscal deficit target is Rs 17.86 lakh crore. The deficit in the same period last year was 45.6% of the budget estimate for 2022-23. The more the government spends than its income is called fiscal deficit.
GDP growth is estimated to be 6.4% in financial year 2024
Recently S&P Global Ratings had released GDP estimates. S&P has raised India’s gross domestic product (GDP) growth forecast for fiscal year 2024 to 6.4%. Earlier it was 6%. Strong domestic momentum has been cited as the reason for this.
What is GDP?
GDP is one of the most common indicators used to track the health of the economy. GDP represents the value of all goods and services produced within a country in a specific time period. In this, the foreign companies which produce within the country’s borders are also included.
How is GDP calculated?
A formula is used to calculate GDP. GDP=C+G+I+NX, here C means private consumption, G means government spending, I means investment and NX means net export.
