GDP rebound: India records robust 8.2% growth in second quarter
PTC Web Desk: India’s economy recorded a strong rebound in the July-September quarter, growing at 8.2 per cent, the highest in six quarters. Government data shows that this jump came as factories increased production ahead of an expected rise in consumer demand following the recent GST rate cuts.
The July-September GDP growth was higher than the 7.8 per cent expansion seen in the previous quarter and well above the 5.6 per cent recorded during the same period last year.
Manufacturing played a key role in this improvement. The sector, which contributes 14 per cent to India’s GDP, grew by 9.1 per cent in the second quarter. This is a sharp rise compared to the 2.2 per cent growth seen in the corresponding quarter of the last financial year.
Data also showed that India’s nominal GDP grew by 8.7 per cent during this period.
To boost the domestic economy, Prime Minister Narendra Modi has rolled out tax cuts and labour reforms. At the same time, India has resisted pressure from the United States to lower tariffs in key sectors like agriculture as part of a trade deal.
The Economic Survey 2024–25 has stressed that India must maintain an average growth rate of nearly 8 per cent for the next 10–20 years to achieve the goal of becoming a developed nation, a vision known as ‘Viksit Bharat’ by 2047.
India’s economic progress is evident from its rising global ranking. The country has moved from being the 11th-largest economy in 2013–14 to the fourth-largest today. However, experts highlight the need for continued focus on improving per capita income.
In recent years, India posted growth rates of 8.7 per cent in 2021–22 and 7.2 per cent in 2022–23. Earlier this year, the World Bank said India will need to grow at an average of 7.8 per cent over the next 22 years to meet its developed nation target. The institution also warned that achieving this will require equally strong and sustained reforms.
- With inputs from agencies
