GDP growth for Q2 shows strong momentum in economy: ASSOCHAM

GDP growth of 7.6 per cent for the second quarter of FY2024 not only beats expectations, but also points towards a higher trajectory for the full fiscal, helped by excellent bounce back by key sectors like manufacturing, mining, construction, etc., ASSOCHAM Secretary General Deepak Sood said. 

“While the second quarter ending September has surprised us on a brighter side, October core data, reflecting a good beginning even for the third quarter does signal a strong momentum in the economy, built largely on robust domestic demand,” Sood added.

He further said that while agriculture numbers are on the lower side, the phenomenon is largely related to uneven spread of monsoon rains impacting the Kharif production. 

He added, with manufacturing showing an excellent expansion of 13.9 per cent and construction by 13.3 per cent, the stage is set for a strong revival in the investment cycle in the next few quarters as this level of performance would push up the overall capacity utilisation. Double digit growth in electricity generation and mining are all building blocks of an economy, which is expanding at the fastest pace in the world.