India’s economic growth will accelerate in the third quarter of 2024

According to a report by rating agency ICRA, the Indian economy is poised for accelerated growth in the third quarter of the current fiscal year. Growth is forecast to exceed the first half of the year. The growth is due to favorable economic indicators and strong industry activity, as evidenced by preliminary data for November.

Electricity demand rose, supported by a favorable base effect, and the festive season contributed to a surge in vehicle registrations. These factors support ICRA’s forecasts of improved GDP growth in the third quarter, reflecting a resilient economic environment.

Mobility and transport indicators have improved markedly. Vehicle registrations rose 32.4% year-on-year in October, a significant improvement from an 8.7% decline in September. This surge has been driven by increased demand for two-wheelers and passenger vehicles. Additionally, petrol consumption rose to 8.7%, with domestic air travel and two-wheeler manufacturing recording comparable growth. Rail freight and diesel consumption also rose, accompanied by a 25.6% increase in non-oil exports, driven by industries such as electronics and engineering products.

In October, annual growth stood at 10.1%, the highest in eight months, according to ICRA’s Business Activity Monitor. Up from 6.6% in September, the rise reflects India’s economic resilience amid ongoing challenges and sets a positive outlook for GDP growth in the coming months.

(With the participation of agencies.)