India's GDP growth has stood at 7.6 percent in the second quarter of the current financial year 2023-24, beating all estimates including those of the Reserve Bank. The growth rate in the second quarter of the financial year 2022-23 was 6.2 percent.
The negative aspect of the fast-paced Indian economy is that the growth rate of the agricultural sector has declined to less than half in this quarter. Monsoon was affected due to strengthening of El Nino, due to which the growth of agriculture sector has come down to 1.2 percent. In the same quarter of the last financial year, the agriculture sector had achieved a growth rate of 2.5 percent.
The Union Ministry of Statistics and Program Implementation on Thursday released the GDP growth figures for the second quarter. According to the data, the growth rate of agriculture sector in the second quarter decreased by 2 percent as compared to the first quarter. In the first quarter of the current financial year, the growth rate of the agriculture sector was 3.5 percent.
Latest figures clearly show that this year crop production has been affected due to irregular monsoon. Due to this, the income of farmers has decreased and the rural economy has weakened. Experts have expressed the possibility that the effect of El Nino will remain in the Rabi season also.
As per the National Statistical Office (NSO) data, the GVA (Gross Value Added) growth of the manufacturing sector accelerated to 13.9 per cent in the second quarter of the current fiscal against a decline of 3.8 per cent a year ago.
India, thus, remains the fastest-growing major economy, as China's GDP growth in the July-September quarter this year was 4.9 per cent. However, the GDP growth in the second quarter was marginally lower in comparison with the first quarter of FY24. In the first quarter, the GDP growth stood at 7.8 per cent.
It may be noted that the Reserve Bank of India (RBI) had estimated GDP growth in the July-September quarter at 6.5 per cent. Some noted economists too had estimated GDP growth at 6.8 per cent, despite the global economic slowdown. The stronger-than-expected growth can be attributed to strong urban consumption, manufacturing, and higher government spending. Manufacturing growth came in at 13.9 per cent, while construction growth stood at 13.3 per cent.
The estimated Nominal GDP or GDP at current prices for Q2 2023-24 stands at Rs 71.66 lakh crore, reflecting a 9.1 per cent growth compared to Rs 65.67 lakh crore in Q2 2022-23, where the growth rate was 17.2 per cent.
Meanwhile, the estimated GDP at current prices for the first half of 2023-24 is Rs 142.33 lakh crore, compared to Rs 131.09 lakh crore in the corresponding period of the previous year, indicating a growth of 8.6 per cent in H1 2023-24, as opposed to 22.2 per cent in H1 2022-23, as per data shared on Thursday by the Ministry of Statistics and Programme Implementation.
The next release of quarterly GDP estimates for the quarter Oct-Dec, 2023 (Q3 2023-24) will be on February 29, 2024.