India Q2 GDP: Economic Affairs Secretary Seth expects good Q2 growth number

Expect a good Q2 GDP growth number, says Economic Affairs Secretary Seth

The government anticipates a "good" GDP growth rate for the second quarter of 2023-24, as stated by Economic Affairs Secretary Ajay Seth.

"We expect a good number. Early indicators show good momentum in the second quarter," Seth mentioned on November 29 in the capital during an event.

Also Read: Five things to watch out for in latest GDP growth data

The secretary further indicated his agreement with the optimistic assessment of Reserve Bank of India Governor Shaktikanta Das. In the previous month, Das had remarked that the July-September growth rate could be a positive surprise.

"The second-quarter GDP number, which will be released at the end of November, will likely surprise... looking at the momentum of economic activity, considering a few early data points and indicators, I can say that the second-quarter GDP number, when released, will probably surprise everyone on the upside," Das had said on October 31.

According to a Moneycontrol survey involving 17 economists, India's GDP might have expanded by 6.8 percent in July-September, with data set to be released by the statistics ministry on November 30. The RBI's official forecast is 6.5 percent.

In a recent article, the central bank's economists acknowledged the higher market expectations.

"The RBI's projections incorporated a turnaround in the momentum of activity into expansion in Q2, and hence, the consensus, if actualized, would imply a stronger pace of activity than projected," the RBI's State of the Economy article stated on November 16.

Moving beyond growth, Seth reiterated that the finance ministry is confident of meeting the 2023-24 fiscal deficit target of 5.9 percent of GDP. Additionally, he affirmed the government's commitment to reducing the fiscal deficit to 4.5 percent of GDP by 2025-26.