India’s FY24 GDP Growth Projection at 7.3%: NSO Data

The National Statistical Office (NSO) has released its first advance estimates projecting a robust 7.3% growth for India’s GDP in the fiscal year 2023-24. This surpasses the 7.2% growth recorded in the previous financial year. Notably, the construction sector is expected to lead with double-digit growth at 10.7%.

Key Estimates by NSO

• Real GDP at Constant Prices in FY24 is projected to reach ₹171.79 lakh crore, compared to the provisional estimate of ₹160.06 lakh crore for FY23.
• The growth in real GDP is estimated at 7.3%, a slight increase from the 7.2% recorded in FY23.
• Nominal GDP at current prices for FY24 is estimated at ₹296.58 lakh crore, reflecting an 8.9% growth compared to the 16.1% in FY23.

Differing Projections

• The NSO’s projections surpass those of various financial institutions and government bodies, with the RBI recently revising its FY24 GDP growth forecast to 7%, citing high growth observed in October and November 2023.
• SBI Research anticipates an overall growth of around 7%, while the Asian Development Bank and ICRA have raised their economic forecasts to 6.7% and 6.5%, respectively.

Global Perspectives

• S&P predicts India to become the third-largest economy by 2030, emphasizing the need to establish itself as a significant global manufacturing hub.
• The IMF’s 2023 Article IV consultation report notes robust growth in India for the year, projecting a 6.3% growth in real GDP for both FY24 and FY25.

Important Questions Related to Exams

1. What is the projected GDP growth rate for India in the fiscal year 2023-24, as per the first advance estimates by the National Statistical Office (NSO)?

2. In which sector is double-digit growth expected, according to the NSO’s projections, and what is the specific growth rate anticipated?
3. How does the NSO’s GDP growth projections for FY24 compare to estimates provided by the Reserve Bank of India (RBI) and other financial institutions?

4. Provide a brief overview of the global perspectives mentioned in the article regarding India’s economic growth and its positioning on the global stage.

Please provide your answers in the comment section!!