India’s GDP expanded at its fastest rate in 1.5 years in the last three months of 2023, driven by robust manufacturing and construction activity.

The third-largest economy in Asia expanded by 8.4% during the October-December quarter, faster than the 6.6% predicted by Reuters polling analysts.

India’s economy is among the fastest growing in the world and has consistently outperformed market predictions.

Prime Minister Narendra Modi’s chances could be enhanced by such a great performance in the final significant economic data release before the May elections.

The manufacturing sector, which has grown to make up 17% of Asia’s third-largest economy over the last ten years, rose by 11.6% year over year in December.

Private spending increased 3.5% year over year during the quarter, while government spending decreased 3.2% annually. However, the farm sector, which makes up 15% of the $3.7 trillion economy, has been struggling due to unfavorable monsoon rains.