India’s Q4 GDP Growth Surpasses Expectations at 7.8% YoY

New Delhi: India’s gross domestic product (GDP) surged by 7.8% year-on-year in the fourth quarter of the current financial year, according to data released by the Ministry of Statistics and Programme Implementation. This robust growth outpaced economists’ predictions and marked an improvement from the 6.1% growth recorded in the same period last year and the 8.4% growth in the previous quarter.

The Reserve Bank of India (RBI) had anticipated a 6.9% growth in real GDP for Q4FY24, with a full-year projection of 7.6%. The Real Gross Value Added (GVA) for the final quarter of FY24 was estimated to grow by 6.3%.

For the entire FY24, India’s real GDP is estimated to have grown by 8.2%, up from 7% in FY23. Nominal GDP growth for FY24 was recorded at 9.6%, compared to 14.2% in the previous fiscal year, indicating a strong economic performance despite global challenges.

The Indian economy’s strong growth has been driven by increased infrastructure spending and robust urban demand. Ankita Amajuri, an economist at Capital Economics, credited the economy’s stellar performance to sustained momentum in domestic demand.

In a positive development for the country’s economic outlook, S&P Global Ratings upgraded India’s sovereign rating outlook from “stable” to “positive” on Wednesday, citing expectations of continued economic reforms and stable fiscal policies regardless of the upcoming Lok Sabha election results.