India’s economy has been strong in Q2 of FY24. GDP growth in Q2 was 7.6%, which is better than expected. According to 41 economists polled by Bloomberg, GDP growth in this quarter was estimated at 6.8%. However, before this, GDP growth in April-June i.e. Q1 was 7.8%. That means GDP growth has decreased compared to the previous quarter.
The manufacturing sector had a major contribution in increasing GDP growth. A growth of 13.9% has been seen in this. A growth of 4.7% was seen in this sector in the last quarter.
Growth of industries in the second quarter (YoY)
- Agriculture sector growth decreased from 3.5% to 1.2%
- Mining sector growth increased from 5.8% to 10%
- Manufacturing sector growth increased from 4.7% to 13.9%
- Electricity growth increased from 2.9% to 10.1%
- Construction sector growth increased from 7.9% to 10.4%
- Growth of trade, hotel, transport sector decreased from 9.2% to 4.3%
Gaura Sen Gupta, India economist at IDFC First Bank, also said that the growth in the manufacturing sector is due to the surge in listed company profits.
