New Delhi: India’s economy grew by 8.2 per cent in the fiscal year that ended in March, cementing the country’s position as the fastest-growing major economy in the world, boosting credentials of Prime Minister Narendra Modi government ahead of the ending of mammoth, weeks-long general elections.
Prime Minister termed the FY24 growth rate as just a trailer of things to come. “The Q4 GDP growth data for 2023-24 shows robust momentum in our economy which is poised to further accelerate. Thanks to the hardworking people of our country, 8.2% growth for the year 2023-24 exemplifies that India continues to be the fastest growing major economy globally.”
The Q4 GDP growth data for 2023-24 shows robust momentum in our economy which is poised to further accelerate. Thanks to the hardworking people of our country, 8.2% growth for the year 2023-24 exemplifies that India continues to be the fastest growing major economy globally. As…
— Narendra Modi (@narendramodi) May 31, 2024
Finance Minister Nirmala Sitharaman said the “remarkable” growth rate will continue in the third term of Modi.” The growth is mainly driven by good showing by the manufacturing sector, though the farm sector recorded deceleration during the fiscal as well as fourth quarter (January-March 2024). According the data, India’s economy recorded 7.8 per cent in the January-March period, the slowest in the four quarters of FY24. It was 8.6 per cent in October-December 2023, 8.1 per cent in July-September 2023 and 8.2 per cent in April-June 2023.
Today’s GDP data showcases robust economic growth with a growth rate of 8.2% for FY 2023-24 and 7.8% for Q4 of FY 2023-24. This remarkable GDP growth rate is the highest among the major economies of the world.
It is worthwhile to note that the Manufacturing sector witnessed a…
— Nirmala Sitharaman (Modi Ka Parivar) (@nsitharaman) May 31, 2024
The GDP grew 6.2 per cent in the January-March quarter of 2022-23. The growth propelled the Indian economy to USD 3.5 trillion and set the stage for achieving the $5-trillion target in the next few years. China has registered an economic growth of 5.3 per cent in the first three months of 2024. According to the NSO data, real GDP, or GDP at constant prices, is estimated to attain a level of Rs 173.82 lakh crore in 2023-24, against the first revised estimates (FRE) of GDP for 2022-23 of Rs 160.71 lakh crore.
“The growth rate in real GDP during 2023-24 is estimated at 8.2 per cent as compared to 7.0 per cent in 2022-23,” it stated. Nominal GDP or GDP at current prices is estimated to attain a level of Rs 295.36 lakh crore in 2023-24, against Rs 269.50 lakh crore in 2022-23, showing a growth rate of 9.6 per cent, it added. The real GDP in the March quarter of 2023-24 is estimated at Rs 47.24 lakh crore, against Rs 43.84 lakh crore a year earlier, showing a growth rate of 7.8 per cent.
Nominal GDP, or GDP at current prices in the March quarter of 2023-24, is estimated at Rs 78.28 lakh crore, against Rs 71.23 lakh crore in the year-ago period, showing a growth rate of 9.9 per cent. The real GVA (gross value added) is estimated at Rs 158.74 lakh crore in 2023-24, against the FRE for 2022-23 of Rs 148.05 lakh crore, registering a growth rate of 7.2 per cent as compared to 6.7 per cent in 2022-23.
The GVA growth in the manufacturing sector accelerated to 8.9 per cent in the March quarter against 0.9 per cent a year ago. GVA growth in mining was 4.3 per cent in the fourth quarter compared to 2.9 per cent in the same quarter of the previous fiscal.
“As predicted, GDP growth rate for 2023-24 crossed the 8% mark and lands at a comfortable 8.2%. Great news for India!!,” Chairman of the 16th Finance Commission Arvind Panagariya said in a social media post. Construction grew 8.7 per cent in the quarter, up from 7.4 per cent in the corresponding period of 2022-23. The agriculture sector growth decelerated to 0.6 per cent from 7.6 per cent.
The country’s leading economists, including Former NITI Aayog Vice Chairman Rajiv Kumar, hailed the GDP growth rate of 8.2 per cent in FY24, terming it “above all estimates and forecasts”. Kumar said this is the third year in which India has grown at over 7 per cent, outpacing all other large economies.
Rumki Majumdar, Economist, Deloitte India said the GDP surprised to the upside, thanks to strong growth in manufacturing and robust buoyancy in the services sector. “The fourth quarter of FY 2024 saw a prominent increase in exports of engineering goods, electronics items, drugs and pharmaceuticals, and organic and inorganic chemicals—the highest-ever exports recorded in history. That is good news as India is gradually moving up the global value chain,” Majumdar added.
Commenting on the data, Ranen Banerjee, Partner and Leader Economic Advisory, PwC India opined that the 8.2 per cent growth estimate for 2023-24 is significant as it is above the psychological mark of 8% that should boost business sentiments. “The GDP numbers have been buoyed by a strong print in manufacturing supported by a low base given the negative growth printed in the previous year. Mining and Quarrying has also helped the higher print,” he said.
The 8.2 per cent GDP growth in FY24 was hailed by Prime Minister Narendra Modi and finance minister Nirmala Sitharaman, as India continued to remain the world’s fastest growing major economy, as shown by official data shared by the NSO. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today