India Q4 GDP Data Live Updates: GDP Grows by 7.8% in Q4, Full-Year Growth at 8.2%

 

India's GDP for the January-March quarter of FY24 hit 7.8%, surpassing market expectations and highlighting robust growth in the manufacturing sector. For the full fiscal year, the economy grew by 8.2%, reinforcing India's position as the world's fastest-growing major economy. This strong performance sets the stage for achieving the ambitious $5-trillion economy target in the next few years.

Key Highlights

Manufacturing and Sectoral Performance

The manufacturing sector recorded a remarkable growth of 9.9% in FY24, recovering from a contraction of -2.2% in the previous year. This sectoral boom played a significant role in driving the overall GDP growth. Other notable sectors included:

 

- Construction: Grew by 8.7% in Q4 FY24, up from 7.4% in the same period last year.

- Agriculture: Slowed to 0.6% growth from 7.6% a year ago.

- Services: Including trade, hotels, transport, and communication, saw a moderate growth of 5.1% in Q4, compared to 7% the previous year.

- Financial and Real Estate Services: Posted a 7.6% growth, down from 9.2% in the year-ago period.

 

Economic Outlook and Projections

 

Economists expect the momentum to continue into FY25, with the Reserve Bank of India (RBI) projecting an 8% growth for the current fiscal year. The International Monetary Fund (IMF) also raised India's GDP growth projection by 30 basis points to 6.8% for FY24, citing strong domestic demand.

 

Fiscal Health

India's fiscal deficit for FY24 improved to 5.63% of GDP, slightly better than the 5.8% projected in the Union Budget. This was achieved through robust revenue collection and controlled expenditure, with net tax collections at ₹23.26 lakh crore and total expenditure at ₹44.42 lakh crore.

Expert Opinions

Nish Bhatt, Founder & CEO of Millwood Kane International, highlighted the impressive growth driven by manufacturing, construction, and defense. He noted the significant recovery in manufacturing and mining sectors, indicating sustained domestic demand.

Sakshi Gupta, Principal Economist at HDFC Bank, emphasized the strong sectoral performance, especially in manufacturing and construction. She expects the divergence between GDP and GVA to normalize from Q2 FY25 as government spending increases.

Market Reaction

Indian stock markets responded positively to the GDP data release. The Sensex and Nifty 50 ended with mild gains, snapping a five-day losing streak. Investors are now closely watching the upcoming Lok Sabha election results on June 4.

India's strong GDP growth in FY24, driven by robust performance in key sectors like manufacturing and construction, underscores the country's resilient economic fundamentals. With favorable projections and ongoing reforms, India is well-positioned to maintain its growth trajectory and move closer to its $5-trillion economy goal.

Stay tuned for more updates as we continue to monitor India's economic landscape and its implications for the future.