India’s economic juggernaut has defied expectations, roaring to an astonishing 8.4% Q3 GDP growth in the October-December 2023 quarter, fueled by a seismic shift in critical subsidies, revealed in an exclusive Reuters report.
India’s economic juggernaut has defied expectations, roaring to an astonishing 8.4% GDP growth in the October-December 2023 quarter, fueled by a seismic shift in critical subsidies, revealed in an exclusive Reuters report.
This economic meteor marks India’s fastest surge in a year and a half, leaving economists’ conservative 6.6% forecast in the dust.
Yet, beneath the glitz of the GDP figures, the story of Gross Value Added (GVA) unfolds with a nuanced 6.5% climb, hinting at a tale of growth tempered with caution.
“The staggering divergence between GVA and GDP for Q3 2023 was primarily sparked by a substantial slash in subsidies, notably the fertilizer subsidy including Urea,” disclosed a top-ranking official in an interview today.
Today’s closing bell on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) further heralds the triumph of India’s economic renaissance. The NSE Nifty 50 index closed at an all-time high of 22,338.75 points, up by 355.95 points (+1.62%), while the BSE Sensex surged to 73,745.35 points, a remarkable gain of 1245.05 points (+1.72%).
In a parallel dance, today’s market data unveils a compelling narrative. Domestic Institutional Investors (DII) showed a robust interest, with a net investment of ₹3,814.53 crores, buying ₹11,987.98 crores and selling ₹8,173.45 crores worth of equities on the NSE and BSE combined on March 1st, 2024. On the other hand, Foreign Institutional Investors (FII/FPI) displayed a balanced approach, with net investments standing at ₹128.94 crores, marking ₹15,712.62 crores in buys and ₹15,583.68 crores in sells.
Government data, shared exclusively with Reuters, paints a vivid picture—fertilizer subsidies nosedived nearly 70% to 307 billion rupees ($3.7 billion) during this quarter compared to the previous year. This seismic shift in subsidies underpins a significant chunk of the GDP’s stratospheric rise, highlighting the intricate dance between policy reforms and economic acceleration.
As India’s economic engine propels into overdrive, driven by bold subsidy reforms, market enthusiasts are on the edge of their seats. Beyond the headlines of GDP spikes lies a captivating narrative of resilience and opportunity, as India steers its economic course through uncharted waters.
Today’s record-breaking closing numbers on the NSE and BSE serve not just as a reflection of India’s economic prowess but also as a beacon of hope for investors worldwide. The story of subsidies and surges, unveiled exclusively through Reuters, promises not just insight into India’s economic trajectory but also an enthralling saga of opportunity and challenge for investors and analysts worldwide.