Strong domestic demand, an improvement in the services sector, and the government's focus on capital spending are all credited with helping the Indian economy grow at an estimated 8%, a four-quarter high. 

According to the majority of private agencies, GDP growth was between 7.8 and 8.5% in the three months that ended June 30, which is generally in line with the Reserve Bank of India's forecast of 8% growth for the time period. However, growth is probably going to slow down in the following quarters, and the GDP projection for the entire fiscal year is still expected to be between 6% and 6.5 %. The first quarter's statistics will be made public on August 31.

Due to the return to normalcy of operations following the epidemic, the economy expanded by 13.1% in the first quarter of 2022–2023. However, in the last quarter of the fiscal year, growth fell to 6.1%.

According to India Ratings and Research, the first quarter's GDP growth will be 7.9%. The GDP growth in the first quarter of FY24 will be supported by stable government capital spending and benign commodity prices. The resurgence of the services sector would drive development from the supply side, according to India Ratings' chief economist Sunil Sinha.

India's GDP was predicted by Barclays to have increased by 7.8% in the first quarter. Headline growth is anticipated to pick up speed in Q2, reaching a four-quarter high and bringing high-contact services' recovery to a successful conclusion. While overseas demand is waning, domestic demand continues to be the major economic engine of activity, according to Rahul Bajoria, MD and Head of EM Asia (ex-China) Economics at Barclays. 

Suman Chowdhury, Chief Economist and Director of Research at Acuité Ratings & Research, claims The advantageous base is expected to contribute to the robust first-quarter GDP growth estimate of 7.5% YoY, but following quarters' growth estimates are anticipated to be 150-200 basis points lower.

Other organisations, which are more upbeat, have suggested that the economy may have expanded by more than 8% in the most recent quarter.  ICRA predicted that the GDP will rise by 8.5% year over year (YoY) in the first quarter, helped by the favourable base of Q1 FY2023, when the Indian economy was returning to normal following the Covid-19 epidemic. It went on to predict that gross fixed capital formation would have seen double-digit growth in the first quarter.

Manufacturing is sustained as reflected in better IIP, automobile sales, PMI data, it further said, adding that agriculture sales has been strong and power supply has been high. “On the services side, passenger traffic picked up in Q4FY23 has sustained while Air cargo traffic increased,” it said. The agency also expects GDP growth in 2023-24 to be higher than RBI’s projection of 6.5 per cent

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