India's economic growth eases to 9.5% in Sept 2023: ICRA

In quarterly terms, the YoY growth in the index saw an increase, rising to 9.5 per cent in the second quarter (Q2) of financial year 2024 (FY24) from 7.2 per cent in Q1 FY24. This surge is attributed to the favourable impact of a patchy monsoon and resilient domestic demand. Despite this, ICRA projects a slowing down of GDP expansion to 7 per cent in Q2 FY24, down from 7.8 per cent in Q1 FY24.

The projected GDP growth for Q2 FY24 surpasses the Monetary Policy Committee’s (MPC) estimate, which stood at 6.5 per cent for the quarter. This indicates a more optimistic outlook than initially expected by financial policymakers.

The early trends for economic activity in October 2023 are reported to be mixed. This is partly due to the late onset of the festive season in 2023 relative to 2022, which could influence spending and business activity differently compared to previous years.

ALCHEMPro News Desk (DP)