India’s GDP likely to grow at 7.3% in FY24

Tribune News Service

Sandeep Dikshit

New Delhi, January 5

The Indian economy is estimated to grow by 7.3 per cent in the 2023-24 fiscal as against 7.2 per cent in the previous fiscal, mainly due to a strong showing by mining and quarrying, manufacturing and certain segments of services sectors.

Manufacturing boom

It is likely to be a breakout year for the manufacturing sector as it is estimated to grow to 6.5% in the current fiscal as against a mere 1.3% in the previous fiscal.

“Real GDP or GDP at constant (2011-12) prices in the year 2023-24 is estimated to attain a level of Rs 171.79 lakh crore, as against the provisional estimate of GDP for the year 2022-23 of Rs 160.06 lakh crore,’’ said a statement by the National Statistical Organisation (NSO).

“The growth in real GDP during 2023-24 is estimated at 7.3 per cent as compared to 7.2 per cent in 2022-23,’’ it said.

The NSO estimates, if proved correct, will be higher than the RBI’s projection of 7 per cent growth.

It is likely to be a breakout year for the manufacturing sector as it is estimated to grow to 6.5% in the current fiscal as against a mere 1.3% in the previous fiscal, shows the first advance estimates of national income released by the National Statistical Office.

The mining and quarrying sector is expected to nearly double its growth rate in the current fiscal (8.1 per cent) as against 4.1 per cent in the previous fiscal. In the services group, financial services, real estate and professional services are estimated to record a growth of 8.9 per cent this fiscal compared to 7.1 per cent in FY23. The agriculture sector is projected to see a growth of 1.8 per cent this fiscal, lower than the 4 per cent expansion recorded in the previous financial year.

While the growth rate in the construction sector is likely to be 10.7 per cent in the FY24 against 10 per cent in the FY23, there will be a decline in the growth rate of trade, hotel, transport, communication and services related to broadcasting segment from 14 per cent to 6.3 per cent.

“The economic growth is largely bolstered by state spending on infrastructure projects amid sluggish consumer spending and due to robust domestic demand and strong growth in the manufacturing and services sectors,’’ said Nish Bhatt of Millwood Kane International.

Public administration, defence and other services could grow by 7.7 per cent this fiscal against 7.2 per cent in the previous fiscal.

The National Statistical Office also said nominal GDP or GDP at current prices in the year 2023-24 is estimated at Rs 296.58 lakh crore against the provisional estimate of GDP for the year 2022-23 of Rs 272.41 lakh crore.

The growth in nominal GDP during 2023-24 is estimated at 8.9 per cent compared to 16.1 per cent in 2022-23. The size of the economy, as per the current estimates, is slated to be at Rs 296.58 lakh crore or USD 3.57 trillion.

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