India registered a Gross Domestic Product (GDP) growth of 7.6% for the July-September quarter, data released by the government said. It is much higher than the projection of the Reserve Bank of India’s Monetary Policy Committee (MPC) last month.

For the same period in the last year GDP was 5.4%. In the first quarter of 2023-24 (FY24), India’s GDP grew by 7.8%.

Data said the jump in GDP figures in the second quarter was led by manufacturing and construction industries.

Speaking on the GDP growth number, Prime Minister Narendra Modi said, “The GDP growth numbers for Q2 display the resilience and strength of the Indian economy in the midst of such testing times globally. We are committed to ensuring fast paced growth to create more opportunities, rapid eradication of poverty and improving ‘Ease Of Living’ for our people.”

The highest growth was registered in the manufacturing industry at 13.9% in Q2 as compared to a fall of 3.8% in the same quarter last year. It was 4.7% in the first quarter of FY24.

Construction sector witnessed second-highest growth at 13.3%, it was 5.7% in Q2FY23 while in Q1FY24, it was 7.9%.

The electricity, gas, water supply and other utility services industry registered the third-highest growth of 10.1% compared to 6% in Q2FY23, the data said.

The agriculture industry grew at a slower pace of 1.2% as compared to 2.5% a year ago. It had grown by 3.5% in the first quarter of this year.

“Seeing an upside to 6.5% for FY24. We are more comfortable with this number than before and keeping the forecast unchanged except for seeing an upside to the number,” Chief Economic Advisor Anantha Nageswaran said.

“Both union and states have upped their capex. The overall quality of expenditure tilted more towards capex than revenue spend,” he added.

Seeing a fairly strong credit growth. RBI’s decision to increase risk weights for personal loans is to stay higher for longer, he said.

S&P Global Ratings hiked India’s GDP growth rate forecast for the Financial Year 2024 to 6.4% from earlier 6%. While the Goldman Sachs highlighted that India’s real GDP growth will decline marginally to 6.3% in 2024.

The MPC last month, had predicted the second quarter GDP growth at 6.5%. “Looking at the momentum of economic activity, looking at a few early indicators, I can say that the second-quarter GDP number, as and when it is released, at the end of November, in all probability will surprise everyone on the upside,” Governor Das had said.