New Delhi: The Ministry of Statistics and Programme Implementation (MoSPI) released preliminary data showing that India’s Gross Domestic Product (GDP) increased by 7.8 percent during the fourth quarter of the fiscal year 2023–24.
Real GDP growth for the entire fiscal year is estimated to be 8.2 percent. Various polls had predicted that the Indian economy’s growth rate would have slowed to an annual 6.7 percent in the last quarter. The Q4 FY24 GDP growth data was released at 5:30 PM today.
In Q4 FY23, the Indian economy grew by 8.4% year over year (Y-o-Y), which was the highest quarterly growth since Q2 FY22. Based on data from the MoSPI, this growth rate in Q3 exceeded an upwardly revised 8.1%, exceeding estimates of 6.6%.
The real GDP growth rate for 2024–2025 is predicted by the Reserve Bank of India (RBI) to be 7.0%. “With risks evenly balanced, real GDP growth for 2024–25 is projected at 7.0 percent,” the RBI stated in its annual report, which was made public on Thursday. Among other industries, the projection is said to boost activity in semiconductors, real estate, and renewable energy.
The demand for residential and non-residential real estate is expected to sustain and support the traction in construction activity, the RBI continued. It is anticipated that emerging industries such as semiconductors and renewable energy will progress quickly thanks to recent government initiatives.
RBI noted that Union Budget 2024–25 allocations for semiconductors and display factories would help India become a global centre for the production of chips and electronics. “These factors are expected to create new employment opportunities, improve labour incomes and strengthen domestic demand,” the bank stated.
Additionally, it stated that investments would be made in fields where the government has provided production-linked incentives (PLI). The RBI also noted in its report that early signs of an above-normal southwest monsoon and the relaxation of supply chain pressures and core inflation are all positive signs for the inflation outlook for 2024–2025.
Additionally, the central bank stated that it will use the right combination of tools to control both durable and frictional liquidity in order to maintain financial stability by ensuring that money market interest rates rise steadily.
Meanwhile, S&P Global upgraded its outlook of India from stable to positive on Wednesday, According to the International Monetary Fund’s (IMF) most recent estimates, India’s growth rate would remain at 6.8% in 2024–2025.