India GDP Q2: Economy Grows At 7.6%, Beats Estimates; GVA Growth At 7.4%

India's real GDP growth comes to around 7.6% in the second quarter of FY24, stronger than the street's estimates of 6.8%. The latest economic print also surpassed RBI's Q2 target of 6.5% for the second consecutive quarter. Meanwhile, gross value added (GVA) witnessed a growth of 7.4%.

However, the latest GDP data is slightly slower than compared to 7.8% in Q1FY24. Similarly, GVA is also lower from 7.8% growth in the first quarter.

As per the Ministry of Statistics & Programme Implementation, real GDP or GDP at Constant (2011-12) Prices in Q2 2023-24 is estimated to attain a level of Rs 41.74 lakh crore, as against Rs 38.78 lakh crore in Q2 2022-23, showing a growth of 7.6% as compared to 6.2% in Q2 2022-23.

Meanwhile, nominal GDP or GDP at Current Prices in Q2 2023-24 is estimated at Rs 71.66 lakh crore, as against Rs 65.67 lakh crore in Q2 2022-23, showing a growth of 9.1% as compared to 17.2% in Q2 2022-23.

During Q2FY24, private final consumption expenditure (PFCE) dipped slightly to 56.8% of GDP, compared to 57.3% of GDP in Q1. Also, government final consumption expenditure (GFCE) stood at 8.9% of GDP versus 10.1% in Q1FY24. On the contrary, gross fixed capital formation (GFCF) rose to 35.3% of GDP versus 34.7% in Q1FY24.

GVA was driven by robust performance in the mining & quarrying and manufacturing segment which registered a growth of 11.2% and 11.5% in Q2FY24. The construction and agriculture segment also registered a healthy growth of 7.2% and 12.9% in Q2FY24, despite sub-par monsoon.

From April to September 2023, GDP at a constant price is estimated at Rs 82.11 lakh crore as against Rs 76.22 lakh crore during the corresponding period of the previous year, showing a growth of 7.7% in H1 2023-24 as against 9.5% in H1 2022-23.

GDP at Current Prices in H1 2023-24 is estimated at Rs 142.33 lakh crore as against Rs 131.09 lakh crore during the corresponding period of the previous year, showing a growth of 8.6% in H1 2023-24 as against 22.2% in H1 2022-23.

Quarterly Estimates of GDP are indicator-based and are compiled using the benchmark-indicator method, i.e., quarterly estimates available for the previous year referred to as the benchmark year are extrapolated using the relevant indicators reflecting the performance of sectors. Data sourced from various Ministries/ Departments/ Private Agencies serve as valuable inputs in the compilation of these estimates.

The next release of quarterly GDP estimates for the quarter of October-December, 2023 (Q3 2023-24) will be on February 29, 2024.