(Reuters) – India’s economy grew by 6.2% in October-December, marginally below expectations but faster than in the previous quarter on the back of increased government and consumer spending, data released on Friday showed.
The growth in gross domestic product was slightly lower than the 6.3% expansion projected by analysts in a Reuters poll, and the central bank’s estimate of 6.8%. The world’s fifth-biggest economy grew 5.8% in the previous quarter.
COMMENTS
GAURA SEN GUPTA, INDIA ECONOMIST, IDFC FIRST BANK, MUMBAI
The Q3 GDP growth is “marginally better than our expectations”. The pickup in growth moment reflects some improvement in listed companies profit growth with moderation in input cost.
Agriculture growth also showed a strong pickup led by robust Kharif crop output. Meanwhile, on the demand side, private consumption growth picked-up reflecting revival in rural demand.
HARRY CHAMBERS, ASSISTANT ECONOMIST, CAPITAL ECONOMICS, LONDON
Stepping back, the big picture is that the economy is still fairly soft by India’s recent standards. However, with the Reserve Bank of India shifting its priorities from controlling inflation to supporting growth, economic activity should begin to pick up further.
This week’s reversal of the tighter bank lending restrictions introduced in late 2023, as well as the further monetary policy loosening from the “central bank that we expect, will boost household consumption and investment in particular”.
(Reporting by Siddhi Nayak in Mumbai, compiled by Indranil Sarkar in Bengaluru; Editing by Shilpi Majumdar)
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