GDP numbers come to the delight of the Narendra Modi government :: "We are committed to ensuring fast paced growth to create more opportunities", says PM

While the latest GDP print is well above economists' expectations, the government and the RBI had been predicting about a good data.

On November 29, Economic Affairs Secretary Ajay Seth had said that he anticipates a "good" GDP growth number for the second quarter of 2023-24. Before that, RBI Governor Shaktikanta Das, on October 31, had remarked that the July-September growth rate could be a positive surprise. However, the number has left economists more than just surprised. 

The truth is while the global economy has lurched from one crisis to another in recent times, India has shed its lumbering gait and broken into a steady trot.

The Quarter 2, 2023-24 GDP numbers have come to the delight of the Narendra Modi government. The datas certainly defy naysayers and underscore the impact of the leadership of the Prime Minister. 

Modi's sustained thrust on increasing public capex, among other compelling macro economic fundamentals, is driving the robust performance, say experts. 

PM Modi himself tweeted: "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."

The Indian economy had expanded by 7.8 percent in April-June and 6.2 percent in July-September 2022. The Gross Domestic Product (GDP) growth rate came in at 7.6 percent for July-September, beating all estimates, data released by the Ministry of Statistics and Programme Implementation on November 30 showed.

At 7.6 percent, the latest quarterly growth number is significantly higher than expectations. A poll conducted by Moneycontrol had shown economists expected GDP growth for the second quarter of 2023-24 to come in at 6.8 percent, with the highest forecast being Standard Chartered Bank's 7.2 percent. Reserve Bank of India (RBI) had forecast a growth rate of 6.5 percent.  

The sharply higher-than-expected growth rate in the last quarter was down to a jump in activity in the manufacturing and construction sector. 

While the manufacturing sector's gross value added (GVA) grew by 13.9 percent year-on-year in July-September, up from 4.7 percent in April-June, that of the construction sector rose by 13.3 percent, up from versus 7.9 percent in April-June. 

Notably, GDP growth for the first half of 2023-24 stands at 7.7 percent, down from 9.5 percent in the first six months of 2022-23. 

In terms of factors, one can say spending and manufacturing have contributed to these figures. But it is also a fact that 

➡️ Political Stability 

➡️ Structural Reforms (Out of conviction, not compulsion) 

➡️ Social Welfare Schemes 

➡️ Nurturing Robust Industrial Environment

➡️ Confidence of Foreign Investors 

are also key factors.  

Blogger during G-20 Summit 

Experts also talk about -GST fine tuning, efficient implementation, fraud detection/ elimination, Digital payments via UPI, Direct credit of subsidies into beneficiary accounts, Plugging leakages and near zero corruption are also essential contributors towards robustness of India's economy. 

The Indian economy is poised for greatness and thanks to a a number of reforms undertaken in past years paving the way for solid growth.

India is also receiving considerable interest from foreign investors. New Delhi also has warmer relations with the West, which views China with growing suspicion.

This effectively means investors now consider the world’s largest democracy a bright spot in an increasingly fractured world. 

According to CNN, the euphoria around India comes at a time when China, which has been the engine of global growth for decades, is seeing a major economic slowdown. 

Its southern neighbor (that is Bharat) is fast emerging as a potential successor. From a surging young population to humming factories, the country has a lot going in its favor.