India’s economy seen growing at 7.6% in FY24

India’s economy is expected to grow at a robust 7.6 per cent in the 2023-24 financial year against the 7 per cent growth recorded in the 2022-23 fiscal, the second advance estimates of national income released by the National Statistics Office (NSO) showed.

National income, in terms of real gross domestic product or GDP at constant (2011-12) prices is expected to grow at 7.6 per cent to Rs172.90 lakh crore in the year 2023-24 against the GDP of Rs160.71 lakh crore for the year 2022-23.

Real GDP is estimated to have grown at 8.4 per cent with to Rs43.72 lakh crore against Rs40.35 lakh crore in Q3 of 2022-23. 

The first advance estimate had projected a GDP growth of 6.6 per cent in the third quarter of FY 2023-24 and a 7.3 per cent growth for the whole fiscal.

Nominal GDP or GDP at current prices is estimated to have grown by 9.1 per cent to Rs293.90 lakh crore in FY 2023-24 against the 14.2 per cent growth to Rs269.50 lakh crore in the previous fiscal. 

GDP at current prices in Q3 2023-24 is estimated to have grown by 10.1 per cent to Rs75.49 lakh crore, against Rs68.58 lakh crore in Q3 of 2022-23.

Prime Minister Narendra Modi said the robust 8.4 per cent GDP growth in Q3 2023-24 showed the strength of Indian economy and its potential.

“Our efforts will continue to bring fast economic growth which shall help 140 crore Indians lead a better life and create a Viksit Bharat,” he added 

The projection of 7.6 per cent growth in 2023-24 is backed by an 11.6 per cent growth in manufacturing activity and an expected 3.8 per cent growth in agriculture.

Gross value added, which excludes indirect tax and subsidies, is estimated to have grown 6.5 per cent in Q3 2023-24 against the revised estimate of 4.8 per cent in the same period last year. 

Sectoral growth rates, however, remained lower compared to the growth rates in the previous fiscal. Growth in agriculture declined 0.8 per cent in Q3 while mining sector grew 7.5 per cent, manufacturing by 11.6 per cent, electricity and other public utilities by 9 per cent and construction sector by 9.5 per cent, while services sector including trade, hotels, transport, and communication expanded 6.7 per cent.

The share of exports in GDP during Q3 FY 2023-24 was lower at 22.2 per cent against 23.3 per cent in the comparable quarter of previous year. The share of imports in GDP also declined to 24 per cent from 27.5 per cent in Q3 FY 2022-23.

Exports, however, are now expected to increase 1.5 per cent in rupee terms and imports by 10.9 per cent on an annual basis.

Gross fixed capital formation (GFCF) was marginally lower at 32.4 per cent in fiscal third quarter, but showed an increase year-on-year.. 

The share of government spending in GDP contracted 3.2 per cent in Q3 FY 2023-24 while the share of private consumption increased by 3.5 per cent during the quarter.