DELHI: India’s gross domestic product (GDP) for the fourth quarter of the current financial year grew by 7.8% year-on-year, according to data released by the Ministry of Statistics and Programme Implementation on Thursday.
This is better than what most economists had predicted. In the same period last year, GDP growth was 6.1%, and in the previous quarter, it was 8.4%.
The Reserve Bank of India (RBI) had forecasted a 6.9% growth in real GDP for Q4FY24, with a full-year projection of 7.6%.
It may be noted that the Real Gross Value Added or GVA has been estimated to grow at 6.3% in the final quarter of FY24.
The country’s real GDP for FY24 is estimated to be 8.2%, compared to 7% in FY23.
“Real GDP has been estimated to grow by 8.2% in FY 2023-24 as compared to the growth rate of 7.0% in FY 2022-23. Nominal GDP has witnessed a growth rate of 9.6% in FY 2023-24 over the growth rate of 14.2% in FY 2022-23,” said the government.
This indicates that the Indian economy has outperformed economists’ expectations, despite facing global challenges.
Prime Minister Narendra Modi said the Q4 GDP growth data for 2023-24 shows robust momentum in the nation’s economy which is “poised to further accelerate”.
“Thanks to the hardworking people of our country, 8.2 per cent growth for the year 2023-24 exemplifies that India continues to be the fastest growing major economy globally. As I have said, this is just a trailer of things to come…,” PM Modi tweeted.
Union Finance Minister Nirmala Sitharaman said the remarkable GDP growth rate is the highest among the major economies of the world. “India’s growth momentum will continue in the third term of PM Shri
She said, “It is worthwhile to note that the manufacturing sector witnessed a significant growth of 9.9% in 2023-24, highlighting 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.”
Sitharaman added that India’s growth momentum will continue in the third term of PM Modi-led government.
Increased infrastructure spending and robust urban demand have been identified as key drivers behind India’s strong economic growth, despite global headwinds.
Ankita Amajuri, an economist at Capital Economics, had earlier attributed the “stellar performance of the economy” to sustained momentum in domestic demand.
Meanwhile, on Wednesday, S&P Global Ratings upgraded India’s sovereign rating outlook from “stable” to “positive,” citing expectations of continuity in economic reforms and fiscal policies, regardless of the Lok Sabha election results.
