Chennai, Feb 28 (IANS) – According to a report by Dr. Soumya Kanti Ghosh, Group Chief Economic Advisor at SBI, India’s GDP is expected to grow between 6.7-6.9 per cent in the third quarter of FY24, with a GVA growth of 6.6 per cent. A slight decline in economic activity in Q3 is a contributing factor to this estimation.
The SBI Composite Leading Indicator (CLI) Index suggests a slight moderation in economic activity in Q3, with estimates supported by the SBI-ANN model, which has been trained for quarterly GDP data from 2011Q4 to 2020Q4. Consumer confidence in India remains strong, driven by optimism about the economic situation and employment conditions.
Corporate India has shown robust performance in Q3FY24, with a growth of more than 30 per cent in both EBIDTA and profit after tax for around 4,000 listed entities. The improvement in margins is also evident in results of 3,000 listed entities ex-BFSI, with an aggregate EBIDTA margin of 14.95 per cent compared to 12 per cent in the previous year.
As per First Advance Estimates, the production of major Kharif crops for 2023-24 is estimated to decline by about 4.6 per cent from FY23. The Rabi sowing season indicates a slight increase in overall acreage, but concerns arise over the decrease in sown area under cereals. Agriculture may see some moderation if Rabi output does not offset the Kharif shortfall.
Inland fish production has seen rapid growth, reaching 131.13 lakh tonnes in 2022-23. The fisheries sector contributes about 1.07 per cent of the total national GVA and 6.86 per cent of agricultural GVA. This growth might support the agriculture and allied sector growth in FY24, according to Ghosh.
