India's GDP growth surges to 8.4% in Q3, growth rate pegged at robust 7.6 %

New Delhi, Feb 29:  India's economy sprang a surprise with an 8.4 per cent surge in GDP growth during the third quarter (October-December), as a result of which the country's economic growth rate for the financial year 2023-24 is now estimated at a robust 7.6 per cent, figures released by the National Statistics Office on Thursday showed.

The high growth rate of 8.4 per cent in the October-December quarter has been driven by double-digit growth in the manufacturing sector of 11.6 per cent, followed by a good growth rate of the construction sector (9.5 per cent).

"The Indian economy remained resilient with robust 7.6 per cent growth rate of GDP in FY 2023-24 over and above 7 per cent growth rate in FY 2022-23," the Ministry of Statistics said.

The double-digit growth rate of the construction sector at 10.7 per cent, followed by a good growth rate of the manufacturing sector of 8.5 per cent boosted the GDP growth in FY 2023-24, according to it.

The Ministry of Statistics has also revised the growth rate for Q1 of the current financial year to 8.2 per cent from the earlier estimate of 7.8 per cent and the growth rate for Q2 from 7.6 per cent to 8.1 per cent after receiving the latest updated figures.

The Advance Estimates of National Income are indicator-based and are compiled using the benchmark-indicator method i.e. the estimates available for the previous year (2022-23) are extrapolated using the relevant indicators reflecting the performance of sectors. The First Advance Estimates (FAE) for 2023-24 were based on very limited data and used Provisional Estimates of 2022-23 as benchmark estimates, according to the official statement.