India’s Economy Sees Modest Growth Amid Consumer Spending Boost

India's economy grew by 6.2% in Q3 with increased government and consumer spending, yet slightly below the 6.3% forecast. Analysts note improved corporate profits and strong agricultural output as key growth factors. The Reserve Bank of India's policies pivot towards supporting growth, suggesting future economic acceleration.

India's economic growth reached 6.2% during the third quarter, slightly missing the expected 6.3% growth set by analysts. Increased government and consumer expenditures were main contributors to this rise.

Gaura Sen Gupta, an economist with IDFC First Bank in Mumbai, noted that the growth figures surpassed their internal estimates. He attributed the uptick to improved corporate profitability linked to decreased input costs and a robust Kharif crop propelling agricultural growth. Additionally, private consumption saw a resurgence, particularly in rural areas.

Contrastingly, Harry Chambers from Capital Economics in London pointed out that, overall, the economy remains subdued when compared to India's recent historical benchmarks. However, with the Reserve Bank of India shifting its focus from inflation control to growth stimulation, economic activities are anticipated to strengthen further.

(With inputs from agencies.)