India's Gross Domestic Product (GDP) demonstrated robust growth in the January–March 2024 quarter (Q4 FY24), exceeding analysts' expectations, as per the latest official data released on Friday, May 31. The GDP expanded by 7.8 percent year-on-year during this period, compared to the 6.2 percent growth recorded a year ago.
For the full financial year 2023–24, India's GDP growth rate stood at an impressive 8.2 percent, up from 7 percent in FY23, according to an official statement. Analysts had anticipated slower GDP growth for Q4 FY24, ranging from 5.9 percent to 6.7 percent, and for the full 2023–24 fiscal, they had expected GDP to grow at 7.8 percent. However, the actual growth surpassed these projections.
“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,” the statement said.
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 percent," it added.
Finance Minister hails India's remarkable GDP growth
Further, amid the significant data being released, Union Finance Minister Nirmala Sitharaman hailed India's remarkable GDP growth.
She 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 in the world. 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. India’s growth momentum will continue in the third term of the Narendra Modi-led government," she added.
Sector wise growth
Moreover, the data released by the National Statistical Office (NSO) also reflected on India’s Gross Value Added (GVA), which grew by 6.3 percent year-on-year during January–March 2024, and GDP in nominal terms, which grew by 9.9 percent during Q4 2023–24.
Further, the data also highlighted the sector-wise growth, which suggested a substantial increase in the manufacturing sector up to 8.9 percent in the fourth quarter of 2023–24, compared to just 0.9 percent in the year-ago period. However, the agriculture sector witnessed a decline to 0.6 percent growth in Q4 FY24, lower than the 7.6 percent recorded in the previous quarter.
India’s services sector also slowed to 5.1 percent during January–March 2024, compared with 7 percent a year ago. Additionally, gross fixed capital formation (GFCF), an indicator of investment activity, grew by 6.46 percent to Rs 15.7 lakh crore during the March 2024 quarter, accounting for 33.2 percent of the GDP.