Growth propels economy to $3.5 trillion and set the stage for achieving the $5-trillion target in the next few years.
Amidst deepening geopolitical distress and global macroeconomic headwinds, India’s GDP is estimated to have posted a growth of 8.2 per cent in financial year 2023-24 compared to the growth rate of 7.0 per cent in FY 2022-23.
The gross value addition (GVA) has grown by 7.2 per cent in 2023-24 over the growth rate of 6.7 per cent in 2022-23, as per the data released by the National Statistical Office (NSO) of the Ministry of Statistics and Programme Implementation (MoSPI).
The Government’s fiscal deficit for FY24 stands at Rs 16,53,670, coming in 4.6 per cent less than in FY23 and 4.7 per cent lower than FY24 revised estimates.
The GVA expansion is attributed to significant growth of 9.9 per cent in the manufacturing sector in 2023-24 over -2.2 per cent in 2022-23 and growth of 7.1 per cent in 2023-24 over 1.9 per cent in 2022-23 for the mining & quarrying sector.
Finance Minister Nirmala Sitharaman said the GDP data “showcases robust economic growth and this growth rate is the highest among the major economies of the world”. Sitharaman highlighted on X that the manufacturing sector highlights the success of the Modi Government’s efforts for the sector. “Many high-frequency indicators indicate that the Indian economy continues to remain resilient and buoyant despite global challenges. India’s growth momentum will continue in the third term of PM Narendra Modi,” Sitharaman said.
The GDP growth of 8.2 per cent for 2023-24 and 7.8 per cent in the last quarter of the fiscal has beaten even optimistic expectations, notes ASSOCHAM Secretary General Deepak Sood who attributed it to the stellar performance of manufacturing, which is expected to sustain momentum in the current financial year as well. “Manufacturing has really bounced back and this is great news for India which is positioned amongst the fastest-growing economies of the world,” says Sood.
According to the NSO data, nominal GDP has witnessed a growth rate of 9.6 per cent in FY 2023-24 over the growth rate of 14.2 per cent in FY 2022-23. “The growth momentum has surprised everyone,” agree Sunil Kumar Sinha, Principal Economist and Paras Jasrai, Senior Analyst at India Ratings. Although the nominal GDP growth in FY24 is now lower than that used in the FY25 budget preparation, the sheer growth momentum is likely to lead to a higher nominal GDP in FY25. This along with an all-time high RBI dividend will help the Government in realizing higher receipts. The noteworthy feature is the continued capex push by the government. The capex grew 26.5 per cent to Rs 992.4 billion in April 2024, indicating the sustained support to the investment demand in the economy,” say Sinha and Jasrai.
The quarterly estimates of GDP for the fourth quarter (January-March) of 2023-24 show GDP growth of 6.3 per cent and GVA growth of 7.8 per cent in Q4 of FY 2023-24. At the nominal level, growth rates in GVA and GDP for Q4 of FY 2023-24 have been estimated at 8.0 per cent and 9.9 per cent respectively.
India’s GDP (constant prices) is estimated to attain a level of Rs 173.82 lakh crore in the year 2023-24, against the first revised estimates (FRE) of GDP for the year 2022-23 of Rs 160.71 lakh crore.
Nominal GDP or GDP at current prices is estimated at a level of Rs 295.36 lakh crore in the year 2023-24, against Rs 269.50 lakh crore in 2022-23.