India’s economy is estimated to have grown by 8.2% in 2023-24, led by a solid expansion in manufacturing and construction sectors, and a strong push from Jan-March quarter growth, beating expectations and laying a robust foundation for the new govt, which assumes office this month after the polls. The strong numbers will help govt push reforms to sustain rapid expansion against the backdrop of global challenges.
Data released by National Statistical Office (NSO) showed the economy grew 7.8% in Jan-Mar quarter, slower than the upwardly revised 8.6% in Oct-Dec period but above the 6.2% recorded in fourth quarter of the previous fiscal year.
This helped push growth to 8.2%, higher than the second advance estimate of 7.6%. This is higher than most estimates and above RBI’s 7% projection. The growth numbers will help India retain the fastest growing major economy tag.
The Q4 GDP growth data for 2023-24 shows robust momentum in our economy which is poised to further accelerate,” PM Modi posted on X, asserting this was “a trailer of things to come”.
Finance minister Nirmala Sitharaman said many high frequency indicators indicate the Indian economy continues to remain resilient and buoyant despite global challenges. “India’s growth momentum will continue in the third term of Modi-led govt,” Sitharaman, who completed five years as FM, wrote on X.
The latest growth numbers come close on the heels of global ratings agency S&P revising India’s sovereign rating outlook to positive from stable citing robust growth and improving quality of govt spending.
The economy, Asia’s third largest, has recovered swiftly after Covid-19 led by robust domestic demand despite geopolitical challenges. Recovery in rural demand and prospects of a good monsoon augur well for growth in the months ahead.
