India's GDP Growth Forecast: Close to 8% in FY24, Says SBI Report

The State Bank of India (SBI) has released a report predicting that India’s GDP growth for the financial year 2023-24 is likely to be close to 8%. This optimistic forecast comes after India recorded an impressive 8.4% growth in the December quarter, with the National Statistical Office (NSO) revising upwards the GDP estimates for the first and second quarters of the fiscal year.

Key Highlights of the Report

Strong Economic Performance

The Indian economy exhibited robust growth, achieving 8.4% in the third quarter of FY 2023-24, following more than 8% growth in the previous two quarters.
This growth momentum is supported by a significant 32% year-on-year increase in indirect tax collections, indicating a buoyant economy.

Revised GDP Estimates

The NSO has adjusted the GDP growth figures for the first and second quarters to 8.2% and 8.1%, respectively, up from the initial estimates of 7.8% and 7.6%.
Consequently, the cumulative GDP growth for the April-December period of the current fiscal year stands at 8.2%.

Per Capita GDP Milestone

According to the SBI report, the government’s initiatives to enhance the quality of life for all citizens and reduce benefit leakage through direct benefit transfers have contributed significantly to economic growth.
For the first time, the per capita GDP at current prices has surpassed the Rs 2 lakh mark in FY 2023-24.
In terms of constant prices, the per capita GDP has also seen an increase, reaching Rs 1.24 lakh in the current fiscal year.

Implications

The SBI report’s findings underscore the strength and resilience of the Indian economy, despite global economic uncertainties. The upward revision of GDP estimates and the significant growth in indirect tax collections reflect the economy’s robust performance. Moreover, crossing the Rs 2 lakh mark in per capita GDP highlights the positive impact of government policies on economic growth and citizens’ welfare. This growth trajectory positions India as a bright spot in the global economic landscape, with potential implications for investor confidence and future economic policies.

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