A currency trader is pictured through the symbol for the Indian Rupee on the floor of a trading firm in Mumbai May 31, 2013. — Reuters picNEW DELHI, May 31 — India’s economy grew at a faster-than-expected pace of 7.8 per cent year-on-year in the first three months of 2024, helped by a strong performance in the manufacturing sector, and economists expect the momentum to continue this year.
Garima Kapoor, economist, at Mumbai-based Elara Securities, said the growth figures come amid subdued inflation and a forecast of a normal monsoon, which could help boost consumer demand.“The high frequency indicators during the first two months of this financial year suggest 2024/25 fiscal year has started on a relatively stable footing,” she said.
The gross domestic product growth in January-March quarter was lower than a revised 8.6 per cent expansion in the previous quarter, but higher than 6.7 per cent forecast by economists in a Reuters poll, government data released on Friday showed. In the January-March quarter, the headline growth figure was boosted by a sharp fall in subsidies, while gross value added , seen by economists as a more stable measure of growth, rose 6.3 per cent, data showed.Globally, economic activity remains resilient, with China’s economy growing 5.3 per cent year-on-year and the US economy expanding at 1.3 per cent annualised rate in March quarter amid signs of inflation easing, strengthening hopes of a pick up in India’s exports.