A pickup in services, strong government-led capital expenditure and an uptick in consumption-oriented sectors, especially high-end consumption, has supported growth in the July-September quarter, with economists pegging Gross Domestic Product (GDP) growth rate at 6.7-7 per cent. Though growth rate is seen slowing down sequentially from the first quarter’s (April-June) growth rate of 7.8 percent amid concerns over external demand, domestic consumption demand and services in totality are likely to have contributed the maximum share to the growth for the second quarter.
Closer to the data release of the Q2 GDP data, which is slated on November 30, many economists are now expecting growth rate to be near 7 per cent. The overall growth forecast for financial year 2023-24 is, however, being seen around 6.2-6.7 per cent as growth may moderate in the second half of the year given the input cost pressures and waning of base effect.
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