India's Boom: GDP Growth Surpasses Expectations at 8.2% in FY24

Leading economists, including former NITI Aayog Vice Chairman Rajiv Kumar, hailed India's GDP growth rate of 8.2% in FY24—well above all estimates. This marks the third consecutive year of over 7% growth, solidifying India's position as the fastest-growing large economy globally, driven by strong manufacturing and mining sectors.

PTI | New Delhi | Updated: 31-05-2024 22:46 IST | Created: 31-05-2024 22:46 IST
India's Boom: GDP Growth Surpasses Expectations at 8.2% in FY24
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The country's leading economists, including Former NITI Aayog Vice Chairman Rajiv Kumar, on Friday hailed the GDP growth rate of 8.2 per cent in FY24, which was ''above all estimates and forecasts''.

Kumar said this is the third year in which India has grown at over 7 per cent, outpacing all other large economies.

India's economy grew 7.8 per cent in the March quarter, pushing up the annual growth rate to 8.2 per cent, according to official data released on Friday.

''Well Done India! FY24 GDP growth comes in at 8.2 per cent well above all estimates and forecasts. This is the third year in which Indian economy has grown at 7 per cent+ outpacing all other large economies. Mfg and mining sectors recorded strong growth,'' Kumar said in a post on X.

India's G20 Sherpa Amitabh Kant also said India continues to reinforce its position as the fastest-growing large economy in the world.

''The latest estimates for FY24 reveal a remarkable Real GDP growth of 8.2 per cent, surpassing the 7.0 per cent growth in the previous year. This exceptional performance is a testament to India's robust economic momentum and resilience,'' Kant said.

Growth in the January-March period was lower than the 8.6 per cent expansion in the December quarter.

''Once again defying expectations, India's GDP for 4th quarter of fiscal year 2023-24 grew at 7.8 per cent & the real GDP growth for FY24 stands at 8.2 per cent. Highest among major economies… again,'' Economic Advisory Council to the Prime Minister (EAC-PM) member Shamika Ravi said in a post on X.

The growth propelled the Indian economy to USD 3.5 trillion and set the stage for achieving the USD 5-trillion target in the next few years.

CRISIL Ltd Chief Economist Dharmakirti Joshi said, ''India's growth continues to surprise on the upside. Despite a poor showing by agriculture, provisional estimates peg India's GDP growth for fiscal 2024 at 8.2 per cent. This beats the 7.6 per cent growth estimated by National Statistical Office (NSO) in February.'' Industry body Assocham in a statement said the GDP growth momentum will continue in FY25 as well.

''GDP growth of 8.2 per cent for 2023-24 and 7.8 per cent in the last quarter of the fiscal has beaten even optimistic expectations, helped by a stellar performance of manufacturing, which is expected to sustain momentum in the current financial year as well,'' Assocham Secretary General Deepak Sood said. FICCI President Anish Shah said, ''The GDP growth rate of 8.2 per cent for FY24 and 7.8 per cent for Q4 FY24 is the highest among the major economies of the world, making India the fastest growing major economy globally. It is a reaffirmation of the India story as it shows Indian economy to be resilient and buoyant despite global challenges.'' Aditi Nayar, Chief Economist, Head of Research and Outreach at ICRA Ltd, said, ''While the growth in India's GDP and GVA moderated to a four-quarter low of 7.8 per cent and 6.3 per cent, respectively, in Q4 FY24 from the revised prints of 8.6 per cent and 6.8 per cent in Q3, it exceeded both our and market expectations.'' The wedge between the two narrowed only slightly to 148 bps from 178 bps in Q3, amid the high 22.2 per cent growth in net indirect taxes in real terms, she said.

''With such a high growth of net indirect taxes unlikely to sustain in FY25, we expect GDP and GVA growth to print closer to each other, especially in terms of the annual numbers,'' Nayar said.

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