India’s GDP expanded by 7.2% in 2022–2023 and 8.7% in 2022–2022. (Symbolic)
With support from government expenditure and a rebound in manufacturing, India’s GDP is predicted to grow 7.3% in the current fiscal year that ends in March, the fastest rate among the major world countries, the National Statistics Office said on Friday.
The Reserve Bank of India (RBI) increased its growth projection last month to 7% from an earlier estimate of 6.5%, and these are the first advance estimates of the yearly gross domestic product.
The National Statistical Office (NSO) stated in a statement, “These are early projections for 2023/24,” adding that future modifications would depend on factors such as better data coverage, actual tax receipts, and state subsidy spending.
India’s GDP expanded by 7.2% in 2022–2023 and 8.7% in 2022–2022.
Manufacturing, which makes up roughly 17% of the GDP, is predicted to grow 6.5% year over year in 2023–2024, up from 1.3% the year before, while data indicated that building output would increase by 10.7%, up from 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 previous one, which had an effect on salaries in rural areas.
After expanding 7.8% year over year in the previous quarter, India’s economy grew by 7.6% year over year in the September quarter, quicker than anticipated. This led several private economists to raise their annual projections.
S&P Global Ratings predicts that, among other things, India’s major economy will continue to grow at the quickest rate 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. It is anticipated that she will reduce the fiscal deficit from 5.9% of GDP in the current fiscal year and increase spending on infrastructure, aided by increased tax receipts.
