India's estimated real GDP in Q1 FY24 ₹40.37 lakh cr; 7.8% YoY growth

The nominal GDP, or GDP at current prices, in Q1 FY24 is estimated at ₹70.67 lakh crore compared to ₹65.42 lakh crore in Q1 FY23—a growth of 8 per cent YoY compared to 27.7 per cent in Q1 FY23.

At 7.8 per cent YoY, India’s growth rate towers above the growth rate in several other leading economies, V Anantha Nageswaran, chief economic adviser in the ministry of finance, told media persons after the GDP estimates were released yesterday by the National Statistical Office (NSO) under the ministry of statistics and programme implementation.

India’s economic growth maintained the strong momentum witnessed in the final quarter of FY23, he said.

Overall, India’s macroeconomic stability and growth prospects are its strong points and the first quarter GDP data has reaffirmed these two key aspects of the government’s overall macro-economic management, particularly during the COVID pandemic years, he was quoted as saying by an official release.

India's economy in Q1 FY24 grew at the fastest pace in a year, riding on a boost in capital expenditure both at central and state levels, along with stronger consumption demand, especially in rural areas, and improved performance in the services sector, he noted.

The biggest positive for Indian economy is that the private sector capital formation is well under way, and this augurs well for future employment and income growth of Indian households, he said.

He highlighted that new investment projects announced by the private sector have been the highest in Q1 FY24 in 14 years.

Rural demand for fast moving consumer goods (FMCG) has increased, especially for high value goods. The same trend is evident for small towns, contributing to growth, he said.

The manufacturing sector is expanding and income growth is evident in the recovery in rural demand, Nageswaran said.

Investment and consumer momentum will underpin solid growth prospects over the upcoming year, he added.

ALCHEMPro News Desk (DS)