Summary :
India's GDP growth rate for the full financial year 2023-24 was 8.2 percent, up from 7 percent in FY23.
India’s Q4 GDP Data Released: The country’s GDP grew by 7.8 percent year-on-year during the January-March 2024 quarter (Q4 FY24), compared to 6.2 percent growth in the same period last year, according to the latest official data released on Friday, May 31. This growth has surpassed analysts’ estimates.
For the full financial year 2023-24, India’s GDP growth rate was 8.2 percent, up from 7 percent in FY23, according to an official statement.
For Q4 FY24, analysts had anticipated a slower GDP growth of 5.9 percent to 6.7 percent. For the entire 2023-24 fiscal year, they had expected GDP to grow at 7.8 percent.
"Real GDP is estimated to grow by 8.2% in FY 2023-24 compared to 7.0% in FY 2022-23," according to the statement.
Real GDP, or GDP at constant prices, in Q4 of 2023-24 is estimated at Rs 47.24 lakh crore, up from Rs 43.84 lakh crore in Q4 of 2022-23, reflecting a growth rate of 7.8 percent, the statement added.
Reacting to the numbers, Finance Minister NirmalaSitharaman said in a post on X, “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 of the world.”
The manufacturing sector witnessed significant growth of 9.9% in 2023-24, underscoring the success of the Modi government’s initiatives for the sector, Finance Minister NirmalaSitharaman added.
"Many high-frequency indicators show that the Indian economy remains resilient and buoyant despite global challenges. India’s growth momentum will continue into the third term of the PM NarendraModi-led government,” Sitharaman said.
According to the latest data from the National Statistical Office (NSO), India’s gross value added (GVA), which is GDP minus net product taxes and reflects growth in supply, grew by 6.3 percent year-on-year during January-March 2024. For the full FY24, GVA grew 7.2 percent compared to 6.7 percent the previous year.
GDP in nominal terms, which accounts for inflation, grew by 9.9 percent during Q4 2023-24. For the full FY24, it stood at 9.6 percent.
India’s economy had grown 8.4 percent in the preceding October-December 2023 quarter (Q3 FY24). In previous quarters, the economy grew 8.2 percent in the June 2023 quarter (Q1 FY24) and 8.1 percent in the September 2023 quarter (Q2 FY24).
In comparison, China registered an economic growth of 5.3 percent in the first three months of 2024.
Sector-Wise: India’s Q4 GDP Growth
According to the latest official data, the manufacturing sector experienced a significant growth jump to 8.9 percent in the fourth quarter of 2023-24, compared to just 0.9 percent in the same period the previous year.
However, the agriculture sector's growth declined to 0.6 percent in Q4 FY24, down from 7.6 percent in the October-December quarter of 2022-23.
The services sector also slowed, registering a growth of 5.1 percent during January-March 2024, compared to 7 percent a year ago.
Investment and Consumption Activities During Q4
Gross fixed capital formation (GFCF), an indicator of investment activity in the country, grew by 6.46 percent to Rs 15.7 lakh crore during the March 2024 quarter. GFCF accounts for 33.2 percent of GDP.
Private final consumption expenditure (PFCE) increased by 3.98 percent year-on-year to Rs 24.97 lakh crore in Q4 FY24. Government final consumption expenditure (GFCE) rose by 0.89 percent year-on-year to Rs 5.12 lakh crore.
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