MoSPI: India’s GDP grows 7.8% in Q4, FY24 growth to be 8.2%

| Updated: 01 June, 2024 12:54 pm IST

The Indian Economy backed by robust growth in manufacturing and services is on a strong path.

NEW DELHI: India’s real GDP (Gross Domestic Product) witnessed a growth rate of 7.8% in the fourth quarter of FY24. While, the real GDP is estimated to grow at 8.2% in FY24, far higher than a GDP of 7.0% in FY23. These estimates were released in the latest report by MoSPI (Ministry of Statistics and Programme Implementation) on Friday.

Real GDP for the fourth quarter of FY24 is expected to grow at 7.8%, while the Nominal GDP for the same period is estimated to grow at a rate of 9.9%.

Sector Specific Growth

Under the Primary Sector, Agriculture grew by 1.4% in FY24 as against 4.7% in FY23. While, the Mining and Quarrying grew by 7.1% in this fiscal in contrast with 1.9% in previous fiscal.

The Secondary Sector saw Manufacturing grow at a rate of 9.9% in FY24 as against (-2.2%) in FY23. Electricity and another services grew at 7.5% in FY24, down from 9.4% in FY23. While the Construction sector saw a growth rate of 9.9% in this fiscal as compared to 9.4% in the previous fiscal.

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The Tertiary Sector witnessed a growth rate of 6.4% in FY24, a great downfall from 12.0% in FY23. While the Financial, Real Estate section experienced a growth rate of 8.4% this fiscal, down from 9.1% in the previous fiscal. The public administration section saw a growth rate of 7.8% in FY24 unlike a higher 8.9% growth rate in FY23.

Quarter wise growth

Compared with a growth rate of 6.2% in the fourth quarter of FY23, the GDP showed an improvement by growing at a rate of 7.8% in the fourth quarter of FY24.

Some main indicators

Rice production fell drastically from 23.9% growth rate in Q4 of FY23 to (-2.8%) in Q4 of FY24. But, overall it’s estimated to show a change in growth rate from 4.0% in FY23 to 4.1% in FY24.

Coal production reduced from 11.4% in Q4 of FY23 to 10.1% in Q4 of FY24. But, the reduction was large in terms of year-on-year growth change, from 14.8% in FY23 to 11.7% in FY24.

At the same time the production of Crude Oil increased from (-2.9%) in the fourth quarter of FY23 to 3.3% in the fourth quarter of FY24. On yearly basis, it saw a change from (-1.7%) in FY23 to 0.6% in FY24.

Wholesale Price Index

Inflation on food articles increased drastically from 4.0% in the fourth quarter of FY23 to 7.0% in the fourth quarter of FY24. An interesting trend to note is the reduction in inflation of food articles from 7.3% in FY23 to 6.6% in FY24.