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India's gross domestic product (GDP) grew 7.8 per cent year-on-year during the January-March 2024 quarter (Q4 FY24) as compared with the 6.2 per cent growth recorded a year ago, according to the latest official data released on Friday, May 31.
For the full financial year 2023-24, India's GDP growth rate stood at 8.2 per cent as against 7 per cent in FY23, according to an official statement.
Analysts had expected a slower GDP growth of 5.9 per cent-6.7 per cent for Q4 FY24. For the full 2023-24 fiscal, analysts had expected GDP to grow at 7.8 per cent.
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.
Real GDP or GDP at constant prices in Q4 of 2023-24 is estimated at Rs 47.24 lakh crore, against Rs 43.84 lakh crore in Q4 of 2022-23, showing a growth rate of 7.8 per cent.
Reacting to the numbers, Finance Minister Nirmala Sitharaman in a post on X said, “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.”
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, she added.
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-led government.
According to the latest data released by the National Statistical Office (NSO), India’s gross value added or GVA, which is GDP minus net product taxes and reflects growth in supply, also grew 6.3 per cent year-on-year during January-March 2024. During full FY24, GVA grew 7.2 per cent vs 6.7 per cent a year ago.
GDP in nominal terms, which factors in inflation, grows 9.9 per cent during Q4 2023-24. During full FY24, it stood at 9.6 per cent.
India’s economy had grown 8.4 per cent in the preceding October-December 2023 quarter (Q3 FY24). In the previous quarters, the Indian economy had grown 8.2 per cent in the June 2023 quarter (Q1 FY24), and 8.1 per cent in the following September quarter (Q2 FY24).
China registered an economic growth of 5.3 per cent in the first three months of 2024.
According to the latest official data, growth in the manufacturing sector jumped to 8.9 per cent in the fourth quarter of 2023-24 as compared with just 0.9 per cent in the year-ago period.
India’s agriculture sector, however, declined to 0.6 per cent growth in Q4 FY24, which is lower than the 7.6 per cent recorded in the October-December quarter of 2022-23.
India’s services sector, however, slowed to 5.1 per cent during January-March 2024, compared with 7 per cent a year ago.
Gross fixed capital formation (GFCF), which is an indicator of investment activity in the country, grew 6.46 per cent to Rs 15.7 lakh crore during the March 2024 quarter. GFCF accounts for 33.2 per cent of the GDP.
Private final consumption expenditure (PFCE) grew 3.98 per cent year-on-year to Rs 24.97 lakh crore in Q4 FY24. Government final consumption expenditure (GFCE) rose 0.89 per cent YoY to Rs 5.12 lakh crore.
Source: India's Q4 GDP Grows 7.8%, Surpasses Estimates; FY24 Growth At 8.2%