Hours after India's posted stellar numbers, finance minister Nirmala Sitharaman in a post in X called the 8.2 per cent GDP growth in 2023-24 as 'remarkable' and said the momentum will continue in the "third term of the Modi Government".
Today's GDP data showcases robust economic growth with a growth rate of 8.2 per cent for FY 2023-24 and 7.8 per cent for the fourth or March quarter of FY 2023-24. "This remarkable GDP growth rate is the highest among the major economies of the world," Sitharaman said in a post on X.
The data comes one day before India’s marathon elections end, with results to be announced on June 4. "Many high-frequency indicators indicate that the Indian economy continues to remain resilient and buoyant despite global challenges," Sitharaman added.
"India's growth momentum will continue in the third term of PM Modi-led government," she said. ICRA Chief Economist Aditi Nayar said the sequential slowdown in GDP growth was driven by investment activity, even as private consumption maintained a bland 4 per cent rise and government consumption expenditure turned around to a mild growth from a contraction.
"The growth is driven by manufacturing and construction sectors. Mirroring the PMI Manufacturing and IIP numbers, manufacturing GVA grew by 9.9 percent in FY24 while it decelerated by 2.2 percent in FY23. This can be attributed to the impact of PLI schemes initiated under Atmanirbhar Bharat. Notably, the share of manufacturing GVA has increased by 40 bps from 16.9 percent in FY23 to 17.3 percent in FY24 at constant prices," said economist Sandeep Vempati.
"Construction sector GVA, reflecting the housing sector growth and increased capital expenditure from the Union Government, grew by 9.9 percent while it grew by 9.4 percent in FY23. Reduced drag of net exports also contributed to the growth," he further noted.
Vempati sees India continuing with the 7 percent plus growth rate momentum in FY25, driven by lower inflation, lower interest rates, agriculture, manufacturing, capital expenditure momentum and improved global economic conditions.