Q2 GDP numbers show resilience and strength of Indian economy: PM Modi

Prime Minister Narendra Modi said that the Centre was committed to ensuring fast-paced growth to create more opportunities, rapid eradication of poverty and improving 'Ease Of Living'

The high Gross Domestic Product (GDP) growth figures for the second quarter of 2023-24 (FY24) show the resilience and strength of the Indian Economy, Prime Minister Narendra Modi said on Thursday. India's Q2FY24 GDP growth was reported at 7.6 per cent, much higher than the 6.5 per cent projection of the Reserve Bank of India's Monetary Policy Committee (MPC).

In a post on social media platform X, Modi said, "The GDP growth numbers for Q2 display the resilience and strength of the Indian economy in the midst of such testing times globally. We are committed to ensuring fast-paced growth to create more opportunities, rapid eradication of poverty and improving 'Ease Of Living' for our people."

In the first quarter of 2023-24 (FY24), India's GDP grew by 7.8 per cent.

The jump in GDP figures in the second quarter was led by manufacturing and construction industries.

The highest growth was registered in the manufacturing industry at 13.9 per cent in Q2 as compared to a fall of 3.8 per cent in the same quarter last year. It was 4.7 per cent in the first quarter of FY24.

The second-highest growth was witnessed in the construction industry at 13.3 per cent. It was 5.7 per cent in Q2FY23. In Q1FY24, it was 7.9 per cent.

The electricity, gas, water supply and other utility services industry registered the third-highest growth of 10.1 per cent as compared to 6 per cent in Q2FY23. In Q1FY24, it was 2.9 per cent.

During the July-September quarter, the agriculture industry grew at a slower pace of 1.2 per cent as compared to 2.5 per cent a year ago. It had grown by 3.5 per cent in the first quarter of this year.

Last month, the MPC predicted the second quarter GDP growth at 6.5 per cent. However, at the Business Standard BFSI Summit last month, RBI Governor Shaktikanta Das said that the Q2 GDP figure is likely to surprise everyone on the upside.

Das had said, "Looking at the momentum of economic activity, looking at a few early indicators, I can say that the second-quarter GDP number, as and when it is released, at the end of November, in all probability will surprise everyone on the upside."

For FY24, RBI has pegged India's GDP growth projection at 6.5 per cent. In a report titled "China Slows India Grows", rating agency S&P said that it expects India to grow at 6.4 per cent. For next year, FY25, S&P has pegged India's GDP growth at 6.9 per cent.