June 3, 2024
New Delhi, India
India’s GDP Surpasses Expectations with 7.8% Growth in Q4 FY24
India’s GDP growth for the fourth quarter of FY24 reached 7.8%, surpassing the Reserve Bank of India’s (RBI) forecast of 6.9% and outperforming last year’s Q4 growth of 6.1%. The full-year growth is pegged at an impressive 8.2%, highlighting India’s position as the fastest-growing major economy.
Strong Quarterly and Annual Performance
According to the Ministry of Statistics and Programme Implementation, India’s GDP growth for the March quarter stood at 7.8% year-on-year, outperforming most economists’ predictions. In comparison, the GDP growth was 6.1% in Q4 FY23 and 8.4% in the previous quarter.
RBI’s Projections and Actual Performance
The RBI had forecasted a 6.9% growth for Q4 FY24 and a full-year projection of 7.6%. However, the actual figures exceeded these forecasts, with real Gross Value Added (GVA) growing at 6.3% in the final quarter.
Government Statements and Sectoral Growth
Prime Minister Narendra Modi expressed confidence in the continued momentum of the Indian economy, stating that the 8.2% annual growth showcases India as the fastest-growing major economy globally. Union Finance Minister Nirmala Sitharaman highlighted that the manufacturing sector saw a substantial growth of 9.9% in FY24, reflecting the government’s successful economic policies.
Factors Driving Growth
Increased infrastructure spending and strong urban demand have been pivotal in driving India’s economic growth despite global challenges. High-frequency indicators also suggest resilience and buoyancy in the Indian economy.
Positive Outlook and Future Expectations
Ankita Amajuri, an economist at Capital Economics, attributed the economy’s stellar performance to sustained domestic demand. S&P Global Ratings recently upgraded India’s sovereign rating outlook from “stable” to “positive,” citing the continuity in economic reforms and fiscal policies.
Sector-Wise Analysis and Economic Targets
Data from the National Statistical Office (NSO) revealed that the real gross value added (GVA) grew at 7.2% in FY24, up from 6.7% in FY23. This growth has propelled the Indian economy to $3.5 trillion, setting the stage for achieving the $5 trillion target in the coming years.
Conclusion
India’s robust GDP growth in Q4 FY24 and the full year highlights the success of pro-market reforms and strong domestic demand. With continued economic momentum, India is well on its way to achieving significant economic milestones in the near future.
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