The Indian economy is expected to grow 7.3 per cent in the current financial year 2023-24, remaining the fastest-growing major economy, the National Statistics Office said on January 5.
However, these are early projections for 2023-24. Improved data coverage, actual tax collections, expenditures incurred on subsidies, and data revisions made by source agencies would have a bearing on subsequent revisions of these estimates.
India’s economy grew 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22. The first advance estimates of GDP come after the Reserve Bank of India (RBI) raised its growth forecast last month by 50 basis points to 7 per cent from an earlier estimate of 6.5 per cent.
The upward revision by the RBI and the NSO comes on the heels of India reporting more-than-expected July-September quarter growth.
The Indian economy grew 7.6 per cent during the July-September quarter of the current financial year 2023-24, remaining the fastest-growing major economy. India’s GDP growth for the April-June quarter grew 7.8 per cent.
Strong rabi crops sowing despite the late harvest of Kharif crops in some States, the manufacturing sector gaining strength with easing input cost pressures, and a pick-up in demand conditions, according to RBI Governor Shaktikanta Das, were some of the reasons for the revision in 2023-24 growth projections.
Further, NSO estimates showed that the manufacturing sector is estimated to expand 6.5 per cent in 2023-24, compared to 1.3 per cent the preceding fiscal.
Construction sector output is expected to grow 10.7 per cent, up from 10 per cent in the previous year, NSO data showed.
(with inputs from ANI)