GDP grows 7.8% in Q4, 8.2% in FY24; surpasses RBI projection

Animesh Singh

New Delhi, May 31

India recorded a provisional GDP growth of 8.2 per cent for 2023-24, as against 7 per cent in the previous fiscal owing to a good show in the manufacturing sector.

A sharp decline in non-performing assets and growth in other key sectors like agriculture, construction, industries and services also contributed to the GDP’s growth, which surpassed the RBI’s projection of 7 per cent and the World Bank’s 6.6 per cent.

The GDP growth propelled the Indian economy to $3.5 trillion and set the stage for achieving the $5-trillion target in the next few years.

The growth for March quarter of 2023-24 was 7.8 per cent, second-highest for the fourth quarter in the past 10 years, with the highest being 8.6 per cent recorded in 2022-23.

Just a trailer: PM

Thanks to the hardworking people of country, 8.2% growth shows India remains fastest growing major economy… just a trailer of things to come. —Narendra Modi, Prime Minister

Sources said strong corporate and bank balance sheets, continued capex push by the government and strategic trade pacts like India-EFTA (European Free Trade Association) agreement, were among the bright spots for India even as several major economies like China (5.2 per cent), Japan (1.9 per cent) and the US (2.5 per cent) were facing downturn.

Elevated financial market valuations globally (particularly in the US) and possible spill over effects on Indian markets were expected, they said, adding there could also be an impact on the sentiment and household finances due to rising retail exposure to direct stock investments and derivatives positions. Overall, however, there are no systematic risks to the domestic economy, they said. The forecast of a normal monsoon was another positive development, the sources pointed out.