India's GDP growth rate jumps to 7.8% in Q4; FY24 growth at 8.2%

In the previous quarter, GDP growth rate accelerated to 8.4%, it was 7.6% in the July-September quarter

India’s Gross Domestic Product (GDP) growth rate in the quarter ending March 31, 2024 grew by 7.8 per cent, according to the data released by the National Statistical Office (NSO) of Ministry of Statistics and Programme Implementation (MoSPI), on Friday.
 

These figures surpass the Reserve Bank of India’s (RBI) estimate of 7 per cent, according to projections made in its April monetary policy review.

GDP growth provisionally stands at 8.2 per cent for the full financial year 2023-24 (FY24), as compared to the growth rate of 7 per cent  in FY23. Earlier, government estimates had placed GDP growth for FY24 at 7.6 per cent.

Meanwhile, Real Gross Value Added (GVA) has been estimated to grow by 6.3 per cent in Q4FY24.

"This GVA growth has been mainly due to significant growth of 9.9 per cent in manufacturing sector in 2023-24 over a contraction of (-)2.2 per cent in 2022-23 and growth of 7.1 per cent in 2023-24 over 1.9 per cent in 2022-23 for mining sector," the government said in a press release.

For the entire financial year 2023-24, GVA has grown by 7.2 per cent, compared to the growth rate of 6.7 per cent in FY23.

RBI forecasts on India's economic growth

During the Monetary Policy Committee (MPC) in April, the RBI kept its prediction for GDP growth in FY25 unchanged at 7 per cent. Quarter-wise, the central bank set a GDP growth target at 7.1 per cent, compared to 7.2 per cent earlier, for Q1FY25. For Q2FY25, GDP growth target was fixed at 6.9 per cent, from 6.8 per cent. For Q3 and Q4, RBI forecasts 7 per cent GDP growth in both Q3 and 6.9 per cent in Q4.

RBI Governor Shaktikanta Das said that the global economic situation appeared resilient and global trade was expected to grow. Das said that despite inflation slowly moving closer to targets around the world, the last mile of tackling inflation was proving to be difficult.

Das further warned that the worsening debt situation in a few advanced economies may spill over to India as well.

At the time, the governor also announced that India’s foreign exchange reserves had hit an all-time high at $645.6 billion, as of March 29.
 

Eight core industries record 6.2 per cent growth in April

Earlier, the combined Index of eight core industries (ICI) recorded a provisional growth of 6.2 per cent in April 2024 compared to April 2023, according to data released by the Ministry of Commerce & Industry. This positive trend reflects increases in the production of key industries including electricity, natural gas, coal, steel, refinery products, crude oil, and cement.