Q3 GDP growth surges to 8.4%: Unravelling the story of robust growth

Yet, such discrepancies in India's economic data are not unprecedented. That's also the case with large downward revisions of past data that boost recent growth rates

India’s gross domestic product (GDP) growth figures, at 8.4 per cent for the quarter ending December 2023 (Q3), and a projected annual growth of 7.6 per cent, have been significantly ahead of expectations. This prompts a closer examination of the underlying dynamics and their implications for the future.
 

At first glance, the numbers present a paradox. How do we reconcile this robust GDP growth with the modest increase in private consumption, under 4 per cent, and an actual contraction in government spending? This raises eyebrows, especially in light of the 27 per cent surge in personal income-tax collections between April