Indian Economy Grows At 8.2% In FY24, 7.8% In Q4
Real GDP has been estimated to grow by 8.2 per cent in FY 2023-24 as compared to the growth rate of 7.0 per cent in FY 2022-23
India's economy expanded 7.8 per cent in the March quarter, increasing the country's annual growth rate to 8.2 per cent, as per official data that was made public on Friday. The January–March growth rate was less than the 8.6 per cent growth in the December quarter.
“Real GDP has been estimated to grow by 8.2 per cent in FY 2023-24 as compared to the growth rate of 7.0 per cent in FY 2022-23. 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 2022-2,” said NSO in a press note.
The Press Note further explained, that Real GVA has grown by 7.2 per cent in 2023-24 over 6.7 per cent in 2022-23. This GVA growth has been mainly due 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.
“Despite deepening geopolitical distress and global macroeconomic headwinds, India remains resilient. India’s economy is becoming more and more robust as growth is strengthening quarter after quarter; the Q4 growth at 7.8 per cent indicates a strong growth trajectory to continue in the coming quarters too,” said Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry.
Real GVA and Real GDP have been estimated to grow by 6.3 per cent and 7.8 per cent respectively in Q4 of FY 2023-24. Growth rates in Nominal GVA and Nominal GDP for Q4 of FY 2023-24 have been estimated at 8.0 per cent and 9.9 per cent respectively.
“While these strong growth figures may present a challenge for the Reserve Bank of India (RBI) in its monetary policy decisions, slower inflation and ongoing fiscal consolidation should pave the way for modest rate reductions in the first half of 2025. This emerging scenario bodes well for the Indian equity market. Despite a sharp rally over the past 12 months, we expect equity returns to remain healthy in the next year," said Sujan Hajra, Chief Economist and Executive Director, Anand Rathi shares and Stock Brokers.
