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In a significant economic development, India’s Gross Domestic Product (GDP) has surged at an impressive rate of 7.8% during the April-June quarter of FY24. This robust growth reaffirms India’s status as the fastest-growing major economy, surpassing even China, which recorded a GDP growth of 6.3% in the same period.
Steady Economic Expansion
According to data released by the National Statistical Office (NSO), this 7.8% GDP growth closely aligns with the expectations of economists, who had projected a range of 7.7% to 8.5%. However, it’s worth noting that this figure represents a slight decline from the remarkable 13.1% growth registered in the corresponding period of the previous fiscal year.
Breaking down the numbers, the agriculture sector stands out with a notable growth rate of 3.5%, a significant improvement from the 2.4% growth witnessed in the April-June quarter of FY22-23. On the other hand, the manufacturing sector experienced a slowdown, with its growth rate decreasing to 4.7%, compared to the 6.1% recorded in the same period last year.
In terms of nominal GDP or GDP at current prices for Q1FY24, India recorded an 8% growth rate. This is substantially lower than the staggering 27.7% growth seen in Q1FY22-23.
Despite the impressive figures, it’s crucial to recognize that India’s economic growth might face headwinds in the upcoming quarters. Factors such as the impact of El Nino on the monsoon, a dip in mining output, sluggish exports, and a potential slowdown in government capital expenditure due to the approaching Lok Sabha elections could moderate the growth trajectory.
Data Release and Projections
The National Statistical Office, operating under the Ministry of Statistics and Programme Implementation, follows a schedule of releasing quarterly GDP data on the last working day of the second month after the reporting quarter. It’s noteworthy that the Reserve Bank of India (RBI) had provided varying estimates for India’s Q1 GDP growth, ranging from 6.7% (August 2022) to 8% (June and August 2023), reflecting the dynamic nature of economic forecasting.
Read More: Official GDP Data