GDP numbers: Former Chief Economic Adviser K V Subramanian on Friday said that he had predicted in 2021 that India would see 7%+ growth this decade. Addressing a crowd in the US in 2021, Subramanian had said this decade (2020-2029) would be India's decade of inclusive growth during which it will clock over 7 per cent annual growth on the back of strong economic fundamentals.
Highlighting the country's reform process and its ability to convert the crisis into an opportunity, Subramanian said India's ability to stand out has helped it as compared to the rest of the world.
He added that the fundamentals of the economy were strong, even before the pandemic. There were only financial problems.
Speaking at a virtual event organised by the US-India Strategic Partnership Forum (USISPF), Subramanian had noted: “Mark my words, this decade will be India's decade of inclusive growth. In FY'23, we expect growth to be between 6.5 to 7 per cent and then accelerating further as the impact of these reforms is seen.
Recalling his prediction that time, Subramanian on May 31 wrote on social media platform X: "India's GDP growth at 8.2% for FY23-24. An analytical thread: 1. Post Covid, India's growth rate is 9.7%, 7.0% & 8.2%. Feel gratified as in Sep-21, when few believed it, I'd said in many interactions that I expect India to have 7%+ GDP growth."
The Centre on Friday shared the gross domestic product (GDP) numbers, where it stated India's GDP crossed all expectations and stood at 7.8 per cent in the January-March quarter. The Ministry of Statistics and Programme Implementation (MoSPI) revised the full-year 2023-24 GDP to 8.2%, up from 7.6%. This growth surpasses the previous fiscal year's 7.0% growth rate, reflecting India's economic resilience amid global changes.
Sector-wise analysis further stated the economic landscape, with real gross value added (GVA) experiencing a growth rate of 7.2% in 2023-24, compared to the 6.7% growth observed in 2022-23.
The manufacturing sector has emerged as a key driver of this growth, witnessing a surge of 9.9% in 2023-24, a stark contrast to -2.2% growth registered in the previous year.
Commenting on the latest GDP numbers, Subramanian said: "This high growth is with moderate inflation of about 5%. At a time when advanced economies have faced 2.5-4x their avg inflation, India's inflation has been lower than avg. Govt. of India under PM Narendra Modi deserves max credit for this wonderful performance."
He added: "The higher growth in net taxes is part of the robust economic story because over the last decade median buoyancy of net taxes in India has been 1.6 with the average being 1.8."