India’s GDP Likely To Grow 6.7% in Q4, 6.9-7% For Full Fiscal Year: Report

New Delhi: India Ratings and Research has predicted a GDP growth rate of 6.7% for the March quarter and approximately 6.9-7% for the 2023-24 fiscal year, according to principal economist Sunil Kumar Sinha. The official GDP data for Q4 and provisional estimates for FY 2023-24 are slated for release on May 31.

The Indian economy recorded growth rates of 8.2% in Q1, 8.1% in Q2, and 8.4% in Q3 of FY 2023-24. Sinha attributed the strong Q3 performance to a significant tax collection boost, contributing to the wedge between GDP (8.4%) and Gross Value Added (GVA) at 6.5%.

Looking forward, the Reserve Bank of India has forecast a 7% GDP growth for FY 2023-24. Sinha remains optimistic, predicting a 7.1% expansion in the current fiscal year, driven by continued momentum in the services sector, especially construction and electricity. However, mining and industrial output are expected to lag.

A promising monsoon season could further bolster rural demand and consumption, making economic growth more inclusive. The Finance Ministry highlighted India’s robust economic activity, price stability and resilient growth, reinforcing its status as the fastest-growing major economy globally.