India GDP growth: Indian economy grows at 7.8% in Q4, 8.2% in FY24

The Indian economy grew at 7.8% during the January-March quarter of the financial year 2023-24, according to data by the National Statistical Office (NSO) of the Ministry of Statistics and Programme Implementation (MSPI).

The full fiscal year 2023-24 real gross domestic product (GDP) growth provisionally stands at 8.2%.

India GDP: Key highlights

• Real GDP has been estimated to grow by 8.2% in FY 2023-24 as compared to the growth rate of 7.0% in FY 2022-23. Nominal GDP has witnessed a growth rate of 9.6% in FY 2023-24 over the growth rate of 14.2% in FY 2022-23.
• Real gross value added (GVA)has grown by 7.2% in 2023-24 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.
• Real GVA and Real GDP have been estimated to grow by 6.3% and 7.8% respectively in Q4 of FY 2023-24. Growth rates in Nominal GVA and Nominal GDP for Q4 of FY 2023-24 have been estimated at 8.0% and 9.9% respectively.

The Indian economy grew 8.4% in the October-December quarter due to double-digit growth in the manufacturing and construction sectors.

During the July-September quarter, the Indian economy expanded by 7.6%, while the growth was 7.8% in the April-June quarter.

The State Bank of India's (SBI) Economic Research department had projected the GDP for the January-March quarter at 7.4% and for the full FY24 at around 8%.

"Around 2,400 listed entities of Indian Inc. reported top-line growth of 9% in Q4 FY24 while EBITDA grew by around 21%, as compared to almost flat top line in all previous quarters of FY24," the report had said, adding that the net profit growth declined to nearly 12% from 42% in the last two quarters on year-on-year (YoY) basis.

The Reserve Bank of India (RBI) estimated that the Indian economy grew 7.3% in Q4 FY24, with the FY24 growth projected to touch 7.6%.

The International Monetary Fund (IMF) projected India's economy to grow by 7.8% in FY24, while the World Bank forecasted a GDP growth rate of 7.5% in fiscal year 2023-24.

According to a Reuters poll of 54 economists, the GDP growth rate is expected to decrease to 6.5% in Q4 due to weak demand.