February 29 is a bonus day due to the leap year. And, fittingly, India’s growth accelerated, with its economic heart beating quicker than anyone expected.

The second advance estimate, released Thursday, showed Q3 GDP growth climbing a cheerful 8.4%, much beyond consensus expectations of 6.8%.

The overall fiscal year FY24 growth rate is predicted to end at 7.6%, thanks to private investments and the long-awaited deputy reporting for duty. The estimated 7.6% is greater than both the market and the RBI’s estimates of 7%.

Given the election year, the government’s better-than-expected growth record allows it to easily wrap off its second term. Rural recovery has been patchy, and as a result, private consumption has lost

In absolute terms, real GDP is estimated at Rs 172.90 lakh crore, compared to Rs 160.71 lakh crore in FY23. In Q3, growth is expected to reach Rs 43.72 lakh crore, up from Rs 40.35 lakh crore the previous year. The sequential growth rate in the third quarter was a moderate 4.4%.

In the first nine months of FY24, GDP increased by 8.2% over FY23. While the agriculture sector’s 1.2% growth rate is depressingly sluggish, comparable to the rate at which ants move grains, the industrial sector appears to be thriving, with mining and manufacturing growing at 8.4% and 10.3%, respectively. However, whereas the services industry had a solid headline growth, its biggest sub-segment trade, hotels, and transportation witnessed a fairly pale growth of 6.8% as compared to 14.2%.

Agriculture, forestry, and fisheries suffered the most in Q3, falling by 0.8% due to reduced kharif crop output. The industrial sector expanded at a rate of 9.5%, which is lower than the 12.5% recorded in the second quarter. Analysts believe the latter was attributable to a negative base impact and a slowing of volume expansion.

In fact, on the supply side, six of the eight broad indicators experienced decreased sequential growth in Q3, but performed better than the prior year. Two service industries, trade, hotels, and financial and real estate services, experienced higher growth in the second quarter.

In terms of expenditure, both investments and consumption aided government expenditure, which had previously operated on its own.

“Moving forward, India is likely to maintain its status as one of the world’s fastest-growing economies, outpacing all other developing market countries. However, we may see some short-term deceleration due to the inflationary impact of food prices, geopolitics, and the Red Sea issue,” stated Nish Bhatt, Founder & CEO of Millwood Kane International.