The Indian economy is projected to grow by 7.3 percent in the fiscal year 2023-24, making it the fastest-growing major economy, according to estimates from the National Statistics Office. These early projections are subject to revision based on factors such as improved data coverage, tax collections, subsidies, and data revisions by source agencies.
India’s economy grew by 7.2 percent in 2022-23 and 8.7 percent in 2021-22. The Reserve Bank of India (RBI) recently raised its growth forecast by 50 basis points to 7 percent, reflecting the positive momentum in the economy. The NSO’s upward revision also follows stronger-than-expected growth reported for the July-September quarter of the current fiscal year, with the Indian economy expanding by 7.6 percent.
Several factors contribute to the revised growth projections for the fiscal year 2023-24. The strong sowing of rabi crops, despite delays in the harvest of kharif crops in some states, has had a positive impact. Additionally, the manufacturing sector is gaining strength with easing input cost pressures, and there is a noticeable pickup in demand conditions, as highlighted by RBI Governor Shaktikanta Das.
The NSO estimates suggest that the manufacturing sector is anticipated to expand by 6.5 percent in 2023-24, compared to 1.3 percent in the preceding fiscal year. Furthermore, the construction sector’s output is expected to grow by 10.7 percent, up from 10 percent the previous year, according to NSO data.
These estimates signal positive momentum for the Indian economy and provide hope for a strong recovery in the coming years. The government’s focus on various sectors and initiatives aimed at boosting growth, as well as the resilience shown by the Indian economy in the face of challenges, contribute to this positive outlook.
However, it is important to note that these are still early projections, and subsequent revisions may be influenced by various factors. As the data coverage improves and more accurate information becomes available, the estimates may be adjusted accordingly.
Overall, the projected growth of 7.3 percent for the fiscal year 2023-24 reaffirms India’s status as one of the fastest-growing major economies. With promising indicators across sectors and continued government efforts towards economic recovery, the outlook for India’s GDP remains positive.
