India's GDP Grows 7.8 Per Cent In March Quarter, Pushing FY24 Growth To 8.2 Per Cent

India's gross domestic product (GDP) grew by 7.8 per cent in the last quarter of the fiscal year 2024, beating analysts' expectations, according to data released by the Ministry of Statistics and Programme Implementation (MOSPI) on Friday (31 May).

The Centre now estimates the overall growth rate for FY24 to be 8.2 per cent.

"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," an official release said.

The real Gross Value Added (GVA) saw an increase of 7.2 per cent in 2023-24, compared to 6.7 per cent in the previous fiscal year.

In the Q4 of FY24, real GVA and real GDP have been estimated to grow by 6.3 per cent and 7.8 per cent respectively, the release said.

This growth was driven largely by a significant 9.9 per cent expansion in the manufacturing sector, which had contracted by 2.2 per cent in 2022-23.

Additionally, the mining sector grew by 7.1 per cent in 2023-24, up from 1.9 per cent in 2022-23, Economic Times reported.

India’s strong growth comes amidst a challenging global outlook in 2023, as rising geopolitical tensions, conflicts, financial stress, persistent inflation and a slowdown in international trade pose downside risks for global growth.

Analysts had anticipated a robust performance for the January to March quarter.

The Reserve Bank of India (RBI) had projected a 7 per cent growth in Q4FY24, while an ET Poll suggested a 6.8 per cent growth rate.

A Reuters poll estimated a 6.7 per cent year-on-year growth for the quarter, citing weak demand. The State Bank of India (SBI) had predicted a 7.4 per cent growth for Q4 FY24, leading to an annual growth estimate of 8 per cent.

In the previous three quarters, the Indian economy expanded by 7.8 per cent in Q1, 7.6 per cent in Q2, and 8.4 per cent in Q3, on an annual basis. The economy grew by 6.1 per cent in Q4 FY23.

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