India’s GDP Likely to Grow 7.3% in 2023-24: Govt Estimates

India’s economy is expected to show resilience in the 2023-24 fiscal, with a growth rate of 7.3%, surpassing the previous year’s 7.2%. The National Statistical Office’s (NSO) first advance estimates attribute this growth to impressive performances in mining, quarrying, manufacturing, and specific service sectors.

Manufacturing output is anticipated to soar to 6.5% in the current fiscal, a significant increase from the 1.3% recorded in 2022-23. Likewise, the mining sector is projected to grow at 8.1%, compared to the 4.1% in the previous fiscal year.

Financial services, real estate, and professional services are expected to contribute to the economic upswing, with an estimated growth of 8.9% this fiscal, outpacing the 7.1% recorded in FY23.

The NSO’s statement reveals that the real GDP for 2023-24 is projected to reach Rs 171.79 lakh crore, up from the provisional estimate of Rs 160.06 lakh crore in 2022-23. The growth rate is estimated at 7.3%, slightly exceeding the Reserve Bank of India’s (RBI) projection of 7%.

In terms of nominal GDP at current prices, the estimate for 2023-24 is Rs 296.58 lakh crore, compared to the provisional estimate of Rs 272.41 lakh crore in 2022-23. The nominal GDP growth rate is estimated at 8.9%, a notable decline from the 16.1% recorded in the previous fiscal year.

The agricultural sector is expected to grow by 1.8%, down from the four percent expansion in the preceding financial year. Trade, hotel, transport, communication, and broadcasting services are projected to grow at 6.3%, a decline from the 14% recorded in 2022-23.

The construction sector is anticipated to grow at 10.7%, while public administration, defence, and other services are estimated to experience a 7.7% growth this fiscal. The gross value added (GVA) at basic prices is projected to grow at 6.9%, a slight decrease from the 7% recorded in 2022-23.

Despite some sectors experiencing a slowdown, the overall economic outlook remains positive, showcasing India’s economic resilience and potential for growth in the coming fiscal year. The estimated size of the economy for 2023-24 is projected to be Rs 296.58 lakh crore or USD 3.57 trillion at an exchange rate of Rs 83/USD.