BUILDING BLOCKS OF PROSPERITY

Optimism surges as India anticipates 7.3% economic growth in fiscal year 2024

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India’s economy is likely to grow by an encouraging 7.3% this fiscal (FY24), according to the first advance estimates of the annual Gross Domestic Product (GDP) released by the National Statistical Office (NSO).

“The growth in real GDP during 2023-24 is estimated at 7.3% as compared to 7.2% in 2022-23,” according to the NSO’s first advance estimates. This growth estimate positions the country at the forefront of major global economies driven by increased state spending and an encouraging rise in manufacturing activities.

The outlook also aligns with the Reserve Bank of India’s (RBI)’s recent upgrading of its growth forecast - from its earlier estimate of 6.5% to 7%. The country’s apex bank’s revised forecast is indicative of India’s favourable economic conditions and positive trends in various segments.

A significant point here is that the economic resurgence can be attributed to the pro-active initiatives taken by the Narendra Modi-led government, including amplified state spending on major infrastructure projects. In the September quarter, India’s economy has performed hearteningly well; it expanded at a higher-than-expected rate of 7.6% y-o-y. This has increased confidence in the country’s ability to maintain robust growth trajectories.

This number comes after another very strong 7.8% growth in the previous quarter. With India expected to maintain the growth momentum in the last quarter as well, India’s GDP growth this fiscal could not only touch 7% but also breach that mark and go past it.

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