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India’s Strong First-Quarter Growth Outpaces Expectations Despite Risks
India’s economy grew faster than expected in the first three months of the financial year.
It grew by 7.8 percent during that period.
Factories, construction companies, and service businesses all expanded.
Service businesses grew the fastest, at 10 percent.
People also continued buying vehicles and other goods.
The government and companies increased spending on investment projects.
Better monsoon conditions helped farmers plant more crops.
However, the economy still faces uncertainty, including problems linked to the West Asia conflict.
India’s economy grew 7.8% in the first quarter, exceeding the Reserve Bank of India’s 7% estimate.
Manufacturing expanded 9.2%, construction 7.7%, and services 10% during the quarter.
Private consumption rose 7.1%, supported by passenger vehicles, two-wheelers, and tractor sales.
Investment remained strong, with capital goods output increasing 15% and central government capital spending rising about 24%.
The strong result could lead to an upward revision of the Reserve Bank of India’s 6.7% full-year growth forecast, although external risks remain.
- Who
- India’s economy, businesses, consumers, and government investment agencies.
- What
- The economy recorded 7.8% growth in the first quarter of the ongoing financial year.
- Where
- India.
- When
- During the first quarter of the ongoing financial year.
- Why
- Growth was supported by manufacturing, services, consumer spending, investment, government capital expenditure, bank credit, and improved monsoon conditions.
Key facts
- Quarterly growth
- 7.8% in the first quarter of the ongoing financial year
- Reserve Bank estimate
- 7% quarterly growth; 6.7% full-year growth projection
- Manufacturing growth
- 9.2%
- Services growth
- 10%
- Private consumption growth
- 7.1%
- Capital goods growth
- 15%
- Central government capital expenditure
- Up roughly 24%
Sources
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