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India's GDP Surges Past Projections
29 Nov
Summary
- India's real GDP grew 8.2% in the second quarter, surpassing expectations.
- Crisil upgraded India's full-year GDP growth forecast to 7%.
- Private consumption, driven by lower food inflation, fuels economic expansion.
India's economy has demonstrated remarkable strength, with real GDP growth hitting 8.2% in the second quarter, a figure that surpassed all projections. This exceptional performance has prompted Crisil to revise its forecast for the current financial year upwards to 7%, a notable increase from its previous estimate of 6.5%.
The primary driver behind this accelerated growth has been a surge in private consumption, fueled by lower food inflation and favorable policy measures like GST rationalization and reduced income taxes. The manufacturing and services sectors have also shown significant upward momentum, bolstering the supply side of the economy.
Looking ahead, Crisil anticipates that these positive trends will continue into the third quarter. While government investment is expected to stabilize, there is a potential for a resurgence in private investment. This optimistic outlook suggests a resilient economic trajectory for India in the near future.
