India's Economic Surge: Revised GDP Figures Indicate Robust Growth

India's economy expanded by 7.8% in Q3, outperforming forecasts after a methodological revision of GDP data. While real growth is strong, nominal growth remains subdued, crucial for revenue. The revised figures signal positive trends in manufacturing and services, influencing market and fiscal outlooks.

India's economy recorded a robust growth of 7.8% in the third quarter, as per revised GDP data, showing an upbeat trajectory compared to the previous year. This update follows a previous quarter growth of 8.4% and highlights a recalibration in economic metrics by the government.

Economists highlight that the revised series, featuring improved economic calculations, reflects stronger real growth figures, although the nominal growth remains below the desired 9%. The service and manufacturing sectors lead this growth, benefitting from festive demand and tax reforms.

Market reactions are positive as the revised growth rates suggest a stable economic environment conducive for corporate profits and fiscal health, although economists remain cautious about the gap between real and nominal gains and potential inflationary pressures.

(With inputs from agencies.)