India’s economy grows faster-than-expected 7.8% y/y in Jan-March
Economists see economic momentum remaining strong in Asia’s third-largest economy
INDIA’S economy grew at a faster-than-expected pace of 7.8 per cent year-on-year in the January-March quarter, helped by government spending and resilient consumer demand, and economists expect the momentum to remain strong this year.
The gross domestic product growth in the first three months of 2024, the fourth quarter of 2023/24 fiscal year, was lower than a revised 8.6 per cent expansion in the previous quarter, government data released on Friday (May 31) showed.
However, it was higher than the 6.7 per cent growth forecast by economists in a Reuters poll.
In the October-December quarter, the headline growth figure was boosted by a sharp fall in subsidies, while gross value added (GVA), seen by economists as a more stable measure of growth, rose 6.5 per cent.
In the March quarter, GVA rose by 6.3 per cent.
India’s economic growth for the full fiscal year 2023/24 was revised up to 8.2 per cent, the highest among large economies globally, from an earlier government estimate of 7.6 per cent.
The growth estimates will be a boost for Indian Prime Minister Narendra Modi, who is largely expected to win a third term in the national election, with results scheduled to be released on June 4. REUTERS
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