India’s economy grew faster than expected in January-March, manufacturing industry strong | Wilnesh News

Thanks to strong growth in manufacturing, India’s economy grew 7.8% annually in the January-March quarter, faster than expected, and economists expect this momentum to remain strong this year.

gross domestic productopen a new page Growth in the first three months of 2024, the fourth quarter of the 2023/24 financial year, is down from a revised 8.6% last seasongovernment data released on Friday showed.

But it was still higher than the 6.7% growth forecast by economists. Reuters poll.

In the October-December quarter, overall growth figures were boosted by a sharp fall in subsidies, while gross value added (GVA), seen by economists as a more stable indicator of growth, rose 6.5%.

In the March quarter, GVA grew 6.3%.

India’s economic growth rate for the 2023/24 fiscal year has been revised up to 8.2% from the previous government forecast of 7.6%, the highest among the world’s large economies.

The growth figures will boost Prime Minister Narendra Modi, who is widely expected to win a third term. national electionsthe results are expected to be announced on June 4.

Manufacturing output expanded at an annual rate of 8.9% in the three months to March, compared with a revised 11.5% expansion in the previous quarter, while agricultural output growth accelerated to 0.6% after a revised 0.4% expansion in the previous quarter. show.

Investors are awaiting the election results in mid-July and the full-year budget to assess any measures by the new government to boost the economy.

Reserve Bank of India (RBI) record surplus The transfer of 2.11 trillion rupees ($25.3 billion) earlier this month could allow the government to increase state spending or cut the fiscal deficit.

RBI Monetary Policy Committee expected to keep benchmark repo rate unchangedopen a new page At 6.50%, economists said at the June 5-7 meeting that inflation remained above 4%, the midpoint of the 2-6% target. Reuters poll.

Data on high-frequency indicators such as car sales, home loans and fuel consumption in April reflected strong urban consumer demand, but concerns remain about weak rural demand despite forecasts of weaker demand in rural areas. above normal monsoon This year.

Globally, economic activity remains resilient China’s The economy grew by 5.3% annually us The economy grew at an annualized rate of 1.3% in the March quarter amid signs of easing inflation, boosting hopes for India’s economic recovery exit.

On Wednesday, S&P Global raised its outlook on India’s sovereign rating to The “positive” in “stability”It added that regardless of the outcome of the national election, broad continuity in economic reforms and fiscal policy is expected.

The economy is expected to grow 6.8% in the current fiscal year starting in April, and the annual growth rate over the next three years will be close to 7%.