ICRA estimates that GDP growth rate will moderate to below 6% in the third quarter of financial year 2023-24!

Economy Business

The firm's economists also referred to the slump in the Centre's capital expenditure in Q3, with October and November seeing a 8.8% dip year-on-year, and their expectations of “little-to-no” growth in the Gross Value Added (GVA ) by the Agriculture sector, in their rationale for the growth downtick in the last quarter. The sharp fall in Kharif crop output and weak progress of Rabi sowing for some crops will hurt the farm sector GVA.


      The main reason for this decline was the significant decline in production of Kharif crops and sowing of some Rabi crops.

      ICRA: Government capital expenditure (capex) in October-November 2023 (in Q3) to decline by -8.8% year-on-year (YoY).

      Agricultural output declined due to a sharp decline in kharif crop production and weak progress in rabi sowing.

 

     


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