NEW DELHI : As per the official data released by the National Statistical Office (NSO) on Thursday, India’s gross domestic product (GDP) has surged by 7.8% in the first quarter of current fiscal year (Q1FY24), compared to 6.1% in the previous January-March quarter of 2022-23 and 4.5% in October-November. India’s gross domestic product (GDP) grew 7.8% in the past quarter, up from 6.1% growth in the previous quarter and 13.1% in April-June 2022. Reserve Bank of India (RBI) had predicted a growth rate of 8%. India remains the fastest-growing major economy as China’s GDP growth in the April-June quarter was 6.3%.

As per the NSO data, the agriculture sector recorded a 3.5% growth, up from 2.4% in the April-June quarter of 2022-23. However, the growth in the manufacturing sector decelerated to 4.7% in the first quarter of the current fiscal compared to 6.1% in the year-ago period. The growth in GDP during the January-March quarter of 2022-23 was 6.1% and 4.5% in October-December.

“The economy’s growth at 7.8% in Q1FY24 was amongst the fastest versus its regional peers, benefitting by a sharp jump in the government capex expenditure, firm services momentum and better consumption, besides a favourable base. External trade was in a soft spot, reflecting the impact of weak global forces. A strong growth print provides the room for the RBI to be focused on anchoring inflationary expectations,” Radhika Rao, senior economist, DBS Bank, Singapore told.

Private consumption, which accounts for nearly 60% of the economy, grew about 6% year on year, up from 2.8% in the previous quarter. However, growth in capital formation, an indicator of investment, eased to about 8% year on year from 8.9% in the previous three months. Services sector growth was helped by brisk activity in financial services, trade, hotels and transport sectors.