31 May 2024, 07:23 PM IST : New Delhi, India – India’s economy exhibited strong growth with an 8.2% increase in GDP for the fiscal year 2023-24, according to the Ministry of Statistics and Programme Implementation. The growth rate for the January to March quarter was 7.8%, surpassing the Reserve Bank’s estimate of 7%. This marks a significant rise compared to the 7% growth rate in the previous fiscal year.
Consistent Quarterly Growth
Throughout FY 2023-24, India’s GDP growth remained above 8% each quarter. Specifically, the economy grew by 8.4% in Q3, 8.1% in Q2, and 8.2% in Q1. The fiscal deficit also improved, falling to 5.6% from the estimated 5.8%.
Sectoral Performance
The manufacturing sector saw a remarkable increase, jumping from -2.2% in the previous year to 9.9%. Similarly, the mining sector’s growth improved from 1.9% to 7.1%. In Q4, manufacturing growth reached 8.9%, and mining growth increased to 4.3%. The construction sector also showed strong performance, growing from 7.4% to 8.7%.
Driving Factors
Strong urban demand and increased infrastructure spending have bolstered the Indian economy. The Reserve Bank of India projects continued growth at around 8% for the next fiscal year.
Quotes from Officials
An official statement from the Ministry of Statistics and Programme Implementation noted, “The robust GDP growth indicates the strength and resilience of the Indian economy, driven by significant improvements in key sectors like manufacturing and mining.”
Understanding GDP and GVA
GDP (Gross Domestic Product) measures the total value of goods and services produced within a country over a specific period. It includes production by foreign companies within the country’s borders. GDP can be measured in two ways: nominal GDP, which is calculated at current prices, and real GDP, calculated at constant base year prices (currently 2011-12). GVA (Gross Value Added) is another key metric that represents the value of goods and services produced, minus the cost of inputs and raw materials. For FY 2024, GVA grew by 7.2%, up from 7.0% in the previous fiscal year.
Key Data and Statistics
- GDP Growth Rate: 8.2% for FY 2023-24.
- Q4 Growth Rate: 7.8%, exceeding the Reserve Bank’s estimate of 7%.
- Fiscal Deficit: Improved to 5.6% from an estimated 5.8%.
- Sector Growth: Manufacturing at 9.9%, Mining at 7.1%, and Construction at 8.7%.
India’s GDP growth reflects a robust economic performance, highlighting improvements across various sectors and setting a strong foundation for continued growth.
