8.4% GDP growth shows economy's strength, potential, says PM Modi

The GDP growth of 8.4 per cent in the third quarter shows the strength of Indian economy and its potential, Prime Minister Narendra Modi said on Thursday, asserting that the government will continue to make efforts to keep fast economic growth and help 140 crore Indians lead a better life and create a 'Viksit Bharat'.

Beating estimates, India's economic growth shot to 8.4 per cent in the third quarter of 2023-24, mainly due to good performance by the manufacturing, mining & quarrying, and construction sectors.

Modi said, "Robust 8.4% GDP growth in Q3 2023-24 shows the strength of Indian economy and its potential.

Earlier in the day National Statistical Office (NSO) of Ministry of Statistics and Programme Implementation (MoSPI) released GDP growth data.

India's Gross Domestic Product (GDP) growth rate in the quarter ending December 31, 2023 (Q3FY24) was 8.4 per cent, according to the data released by the Centre on Thursday. This is higher than the Reserve Bank of India's (RBI's) estimate of 6.5 per cent, according to National Statistical Office (NSO) of Ministry of Statistics and Programme Implementation (MoSPI).

Indian economy remained resilient with robust 7.6 per cent growth rate of GDP in FY 2023-24 over and above 7 per cent growth rate in FY2022-23

Double-digit growth rate of construction sector (10.7 per cent), followed by a good growth rate of Manufacturing sector (8.5 per cent) have boosted the GDP growth in FY 2023-24.

Earlier, India Ratings and Research had predicted that the growth rate in the quarter would be 6.5 per cent. SBI Research said that the growth would be in the range of 6.7-6.9 per cent. 

On the back of double-digit growth in manufacturing sector (11.6 per cent) sector, followed by a good growth rate of Construction sector (9.5 per cent), Real GDP grew by 8.4 per cent in Q3 of FY 2023-24.

During his RBI Monetary Policy Committee (MPC) announcement earlier this month, Governor Shaktikanta Das had said that headwinds from geopolitical tensions, volatility in international financial markets and geoeconomic fragmentation will continue to pose risks to the economic outlook.