Q2FY24 GDP surprised on the upside

The real pressure point in today's GDP statistics is the "agriculture & allied activities" sector that has posted a growth of just 1.2 per cent (Y-o-Y) in Q2FY24, the lowest in the past 18 quarter

Led by healthy year-on-year (Y-o-Y) as well as sequential pick-up in manufacturing, construction and majority of the services, India’s real GDP growth in Q2, FY24 at 7.6 per cent (Y-o-Y) was much higher-than-anticipated. However, the contribution of a favourable statistical base for mining & manufacturing sectors cannot be underplayed. Both these sectors had posted negative growth rates in Q2FY23.
 

From the expenditure side, the real push to growth continued to come from the capital formation (fixed investment) than consumption spending during the first half of the current financial year. As revealed by the fiscal statistics, India’s Central Government had frontloaded