India’s GDP growth rate jumped to 7.8% in Q4 of FY24, leading to an annual growth rate of 8.2%, as reported by the National Statistical Office (NSO) of the Ministry of Statistics and Programme Implementation (MoSPI). This exceeded the Reserve Bank of India’s (RBI) estimate of 7% for the full financial year 2023-24 (FY24) and previous government estimates of 7.6%. The GDP growth rates for the previous quarters were 8.4% in Q3 and 7.6% in Q2. The Real Gross Value Added (GVA) grew by 6.3% in Q4FY24, largely driven by significant growth in the manufacturing (9.9%) and mining (7.1%) sectors. For the entire FY24, GVA growth was 7.2%, compared to 6.7% in FY23.
RBI Forecasts on India’s Economic Growth
During the April Monetary Policy Committee (MPC) meeting, the RBI maintained its GDP growth forecast for FY25 at 7%. The quarter-wise growth targets were set at 7.1% for Q1FY25, 6.9% for Q2FY25, and 7% and 6.9% for Q3 and Q4, respectively. RBI Governor Shaktikanta Das noted the global economic resilience and expected growth in global trade, despite challenges in inflation and potential spillover effects from worsening debt situations in advanced economies. India’s foreign exchange reserves reached an all-time high of $645.6 billion as of March 29.
Eight Core Industries Record 6.2% Growth in April
In April 2024, the combined Index of eight core industries (ICI) recorded a provisional growth of 6.2% compared to April 2023. This growth was driven by increases in the production of electricity, natural gas, coal, steel, refinery products, crude oil, and cement, as per data from the Ministry of Commerce & Industry.
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