India's GDP Elevates Amid Supportive Policies

In October-December, India's economy grew 6.2%, buoyed by increased consumer and government spending. Although manufacturing lagged, rural demand bolstered growth. Revised forecasts predict 9.2% growth in 2023-24. The central bank's interest rate cuts and tax relief aim to further support economic expansion.

NEW DELHI, Feb 28 (Reuters) - India's economic growth reached 6.2% in the October-December quarter, driven by heightened government and consumer spending. This growth, while modestly below expectations, marks an improvement from the previous quarter, according to official data released on Friday.

A robust rural economy bolstered the results, though manufacturing growth remained tepid. Despite the overall GDP rise, it fell short of the post-pandemic peak growth rates. Rising rural demand and policy support are expected to further stimulate economic growth in the coming quarters.

In a bid to enhance economic momentum, India's central bank reduced interest rates for the first time in nearly five years. Additionally, recent personal income tax cuts are anticipated to elevate urban demand, enabling stronger economic expansion through increased consumer spending and easing inflation pressures.