New Delhi, May 31 (Mayank Nigam) Beating market estimates, India’s gross domestic product (GDP) logged 7.8% year-on-year growth in January-March quarter (Q4) of the financial year 2023-24 on the back of strong performance by sectors such as manufacturing and construction. Both manufacturing and construction sectors registered over 8% year-on-year growth in the March quarter of FY24. The farm sector growth was however muted at 0.6% in Q4. The ‘trade, hotels, transport, communication & services related to broadcasting’ segment of the service sector recorded 5.1% year-on-year growth.
“Real GDP or GDP at constant prices in Q4 of 2023-24 is estimated at Rs 47.24 lakh crore, against Rs 43.84 lakh crore in Q4 of 2022-23, showing a growth rate of 7.8%,” said Ministry of Statistics & Programme Implementation (MoSPI) in a press note on Friday. Real GVA (gross value added) in Q4 of 2023-24 is estimated at Rs 42.23 lakh crore as against Rs 39.74 lakh crore in Q4 of 2022-23, thus registering a growth rate of 6.3%. “While the growth in India’s GDP and GVA moderated to a four-quarter low of 7.8% and 6.3%, respectively, in Q4 FY2024 from the revised prints of 8.6% and 6.8% in Q3, it exceeded both our and market expectations,” said ICRA chief economist Aditi Nayar. For the full financial year ended March 31, 2024, the GDP growth is estimated at 8.2% as compared to the growth rate of 7% in FY 2022-23.
“Real GDP or GDP at constant prices is estimated to attain a level of Rs 173.82 lakh crore in the year 2023-24, against the First Revised Estimates (FRE) of GDP for the year 2022-23 of Rs 160.71 lakh crore. The growth rate in real GDP during 2023-24 is estimated at 8.2% as compared to 7.0% in 2022-23,” MoSPI said. Real GVA in the full financial year 2023-24 grew by 7.2% over 6.7% in 2022-23. “This GVA growth has been mainly due to significant growth of 9.9% in manufacturing sector in 2023-24 over -2.2% in 2022-23 and growth of 7.1% in 2023-24 over 1.9% in 2022-23 for mining & quarrying sector,” the official release said. Commenting on the latest GDP data, Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE said, “GDP growth in the fourth quarter of the fiscal year 2023-24 remained robust, with a full-year real GDP growth of 8.2%. This impressive growth, fuelled by increased infrastructure spending and strong consumer optimism, expanding services PMI (purchasing managers’ index) and higher tax collections, bolstered India’s economic momentum despite global headwinds.”