With government investment and a rebound in manufacturing, India’s GDP is predicted to grow by 7.3% in the current fiscal year, which ends in March the National Statistics Office said on Friday.
The Reserve Bank of India (RBI) increased its growth prediction last month to 7% from a previous estimate of 6.5%, and these are the first advance estimates of the yearly gross domestic product.
“These are early projections for 2023/24,” the National Statistical Office(NSO) said in a statement, noting that improved data coverage, actual tax receipts, and spending on state subsidies would have a bearing on subsequent revisions.
About 17% of the GDP is accounted for by manufacturing, which is predicted to grow 6.5% year over year in 2023–2024 as opposed to 1.3% the previous year, according to data. Meanwhile, production from construction was expected to increase by 10.7% as opposed to 10% the year before.
However, the rise in farm output, which accounts for 15% of GDP, was observed to have slowed down to 1.8% in the current fiscal year from 4% in the year prior, which affects salaries in rural areas.
In comparison to the provisional estimate of GDP of Rs 272.41 lakh crore for the year 2022–2023 that was issued on May 31, 2023, the GDP at current prices for the year 2023–2024 is anticipated to be Rs 296.58 lakh crore.
The growth in nominal GDP for 2023–2024 is projected to be 8.9%, compared to 16.1% for 2022–2023.
S&P Global Ratings predicts that, India’s major economy will continue to grow at a rapid pace over the next three years, and that it would surpass Germany and Japan to become the third largest in the world by 2030.
On February 1, Finance Minister Nirmala Sitharaman will deliver the interim annual budget and is anticipated that she can reduce the fiscal deficit from 5.9% of GDP in the current fiscal year while increasing spending on infrastructure, aided by increased tax receipts.
(with inputs from agencies)
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