India GDP Growth Beats Expectations

The Indian economy expanded 7.6% year-on-year in the third quarter of 2023, following a strong 7.8% growth in the previous period and beating forecasts of a 6.8% rise.

The reading is also higher than the Reserve Bank of India projection of 6.5%.

The manufacturing sector soared 13.9%, construction went up 13.3%, utilities 10.1%, mining 10% and financial, real estate, and professional services increased 6%.

Meanwhile, the farm sector grew a meager 1.2%, dragged down by heavy rainfall across the country.

On the expenditure side, government spending rebounded sharply (12.4% vs -0.7% in Q2) and gross fixed capital formation rose faster (11% vs 8%), namely infrastructure spending mostly financed by central and state governments.

At the same time, exports recovered (4.3% vs -7.7%) and imports increased more (16.7% vs 10.1%).

On the other hand, private spending slowed (3.1% vs 6%).