India’s Q2 GDP: A Comprehensive Analysis
India’s economy has shown resilience and growth in recent years, with the Q2 GDP growth rate exceeding estimates at 7.6% [1]. This article will focus on the key aspects of India’s Q2 GDP, including highlights, causes of growth or decline, and the impact on different sectors.
Highlights
- The Indian economy’s Q2 GDP growth rate was 7.6%, surpassing estimates of 6.8% [1].
- This growth rate is the highest in the July-September quarter in 7 years[1].
- The economy has grown at 7.7% in the first half of the year, and experts predict a growth rate of 6.7% – 7% for the fiscal year 2024[1].
Causes of Growth
- Stronger-than-expected growth in the first half of the year has prompted economists to raise their full-year forecasts[1].
- Continued government spending and some revival in private investment have contributed to the strong performance[1].
- The manufacturing sector has shown substantial increases in profitability, contributing to overall growth[6].
- Key infrastructure sectors experienced growth of 12.1% in October, indicating a positive trend in the economy[4].
Impact on Different Sectors
- The services sector has shown resilience, with high-frequency indicators such as services PMI, housing sales, air passenger traffic, and e-way bills pointing towards resilience in services demand[3].
- However, core services GVA growth (services excluding public administration) has slowed sharply to 5.3% in Q2 FY24 from 11.1% in Q1, raising concerns about the quality of jobs created and real growth in wages[3].
- The manufacturing sector has experienced growth, but challenges such as weak rural demand, muted overall consumption growth, and higher risk weights on key credit segments may impact future growth[3].
- Sectors like oil and gas, automobiles, and construction have shown substantial increases in profitability, contributing to overall growth[6].
In conclusion, India’s Q2 GDP growth rate has exceeded estimates, and the economy is expected to continue growing at a strong pace in the coming years. The manufacturing and services sectors have shown resilience and growth, but challenges such as weak rural demand and muted consumption growth may impact the overall performance.
Citations:
[1] reuters
[2] worldbank
[3] bqprime
[4] cnbctv18
[5] worldbank
[6] businesstoday
[7] hindustantimes
[8] thewire
[9] deloitte
[10] spglobal
[11] spglobal
[12] goldmansachs
[13] wikipedia
