India's GDP Grows 8.2 Per Cent In FY24; Q4 Growth At 7.8 Per Cent

India GDP Data: The country's GDP growth rate for the third quarter of FY24 reached 8.4 per cent, significantly surpassing the RBI's estimate of 6.5 per cent

India GDP Data: India’s Gross Domestic Product (GDP) growth rate in the quarter ending March 31, 2024 grew by 7.8 per cent, while the the annual growth rate is recored at 8.2 per cent, according to the data released by the National Statistical Office (NSO) of Ministry of Statistics and Programme Implementation (MoSPI), on Friday. The GDP had expanded 6.2 per cent in the January-March period of the 2022-23 fiscal year, according to the data released by the NSO.

India's GDP growth rate for the third quarter of FY24 reached 8.4 per cent, significantly surpassing the Reserve Bank of India's (RBI's) estimate of 6.5 per cent, according to the NSO data.

As per the data, the economy expanded 8.2 per cent in 2023-24 against a 7 per cent growth in 2022-23. The NSO in its second advance estimate of national accounts had pegged the country's growth at 7.7 per cent for 2023-24.

Prime Minister Narendra Modi said 8.2% growth for the year 2023-24 exemplifies that India continues to be the fastest-growing major economy globally. 

"The Q4 GDP growth data for 2023-24 shows robust momentum in our economy which is poised to further accelerate. Thanks to the hardworking people of our country, 8.2% growth for the year 2023-24 exemplifies that India continues to be the fastest growing major economy globally. As I’ve said, this is just a trailer of things to come," he posted on X.

Meanwhile, Finance Minister Nirmala Sitharaman on Friday said that India's growth momentum will continue in the third term of the Modi government.

In its annual report published on Thursday, the RBI forecast that the Indian economy is set to grow at a rate of 7 per cent for the current fiscal year starting in April. The report also noted that the Indian economy demonstrated strong growth momentum during the 2023-24 financial year (April 2023 to March 2024), with real GDP increasing by 7.6 per cent, up from 7.0 per cent the previous year. This marks the third consecutive year of growth at 7 percent or higher.

Dr DK Srivastava, Chief Policy Advisor, EY India, said, “Driven by buoyant Q4 growth in manufacturing, construction, public administration and defence services and financial and real estate services the full year FY24 real GDP growth is at 8.2 per cent exceeding the expectations of both domestic and multilateral institutions. While private final consumption expenditure growth is still languishing at 4.0 per cent , the main demand side push is coming from gross fixed capital formation which has grown at 9.0 per cent. The external sector drag has also lessened. In Q4, the contribution of net exports turned positive after remaining negative for three successive quarters."

Centre's fiscal deficit at 5.63% of the GDP

The government's fiscal deficit for 2023-24 stood at 5.63 per cent of the GDP, marginally better then the 5.8 per cent estimated in the Union Budget, as per official data released on Friday. In actual terms, the fiscal deficit, or gap between expenditure and revenue, was at Rs 16.53 lakh crore.

In the revised estimate for 2023-24, the government had projected the fiscal deficit of Rs 17.34 lakh crore, or 5.8 per cent of the GDP, in the interim Budget tabled on February 1 in Parliament.

According to the data released by the Comptroller General of India, the government managed to meet the revenue collection target. Net tax collection was at Rs 23.26 lakh crore in FY24, while the expenditure stood at Rs 44.42 lakh crore.

Meanwhile, the combined Index of Eight Core Industries (ICI) increased by 6.2 per cent (provisional) in April, 2024 as compared to the Index in April, 2023.