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India's Economy Surprises With 7%+ Growth: Panagariya

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By Rediff Money Desk, NEWDELHI   Nov 30, 2023 21:10

India's economy grew 7.6% in Q2 FY24, exceeding expectations, driven by strong performance in manufacturing, mining and services, according to former NITI Aayog vice-chairman Arvind Panagariya.
India's Economy Surprises With 7%+ Growth: Panagariya
New Delhi, Nov 30 (PTI) The performance of the Indian economy has surprised pundits yet again and the country is now on a 7 per cent-plus growth trajectory, former NITI Aayog vice-chairman Arvind Panagariya said on Thursday.

India's economy grew 7.6 per cent in the September quarter of this fiscal and remained the fastest-growing large economy, mainly due to better performance by manufacturing, mining, and services sectors, the government data showed on Thursday.

The Gross Domestic Product (GDP) expanded 6.2 per cent in the July-September period.

"Indian economy surprises our pundits yet again. The average of what they predicted for July-Sept quarter was 6.7% growth... The economy delivered 7.6%. I hope they learn that India is now on a 7% plus growth trajectory," he posted on social media platform X.

Economic Advisory Council to the Prime Minister (EAC-PM) member Sanjeev Sanyal said the country's economy registered strong growth in the September quarter of this fiscal.

"The full year growth for 2023-24 is likely to be in the upper end of the 6.5-7 per cent range," Sanyal said.

India remained the fastest-growing major economy, as China posted a 4.9 per cent growth during the quarter under review.

According to the National Statistical Office (NSO) data, the agriculture sector Gross Value Added (GVA) growth decelerated to 1.2 per cent in the September quarter from 2.5 per cent a year ago.

The expansion in financial, real estate, and professional services' GVA was 6 per cent, down from 7.1 per cent in the year-ago period.

The GVA in the manufacturing sector showed a 13.9 per cent growth in the second quarter of the current fiscal compared to a contraction of 3.8 per cent in the year-ago period.

As per the data, the output (GVA) in the "mining and quarrying" accelerated to 10 per cent in the second quarter against a contraction of 0.1 per cent a year ago.

Electricity, gas, water supply and other utility services grew 10.1 per cent from 6.1 per cent. The construction sector recorded a growth of 13.3 per cent year-on-year in the second quarter, compared to 5.7 per cent.

The growth in GDP during the April-June quarter of this fiscal remained unchanged at 7.8 per cent.

"Real GDP or GDP at constant (2011-12) Prices in Q2 2023-24 is estimated to attain a level of Rs 41.74 lakh crore, as against Rs 38.78 lakh crore in Q2 2022-23, showing a growth of 7.6 per cent as compared to 6.2 per cent in Q2 2022-23," the NSO said in a statement.

Nominal GDP, or GDP at current prices, in the second quarter is estimated at Rs 71.66 lakh crore against Rs 65.67 lakh crore a year ago, showing a growth of 9.1 per cent as compared to 17.2 per cent, it added.

It further said the GDP at constant (2011-12) prices in April-September 2023-24 (H1 2023-24) is estimated at Rs 82.11 lakh crore against Rs 76.22 lakh crore during the corresponding period of the previous year, showing a growth of 7.7 per cent in the first half of this fiscal compared to 9.5 per cent in the year-ago period, it said.

The government's fiscal deficit at the end of October touched 45 per cent of the full-year budget estimate, according to data released by the Controller General of Accounts (CGA) on Thursday.
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