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'Trailer of things to come': PM Modi lauds 8.2% GDP growth in FY24; top economists say 'well done India'

India's economy grew 7.8 per cent in the March quarter, pushing up the annual growth rate to 8.2 per cent, according to official data released on Friday.

Trailer of things to come PM Modi lauds 8.2% GDP growth in FY24; top economists say 'well done India' snt
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First Published May 31, 2024, 8:30 PM IST

Prime Minister Narendra Modi on Friday praised the strong GDP growth in 2023-24, emphasizing its reflection of a robust economic momentum poised for further acceleration. Official data released revealed that India's economy recorded a growth of 7.8 percent in the January-March quarter, contributing to an annual growth rate of 8.2 percent for FY24. This growth was primarily driven by a strong performance in the manufacturing sector.

"As I've said, this is just a trailer of things to come," PM Modi said on X, formerly Twitter.

"The Q4 GDP growth data for 2023-24 shows robust momentum in our economy which is poised to further accelerate. Thanks to the hardworking people of our country, 8.2% growth for the year 2023-24 exemplifies that India continues to be the fastest growing major economy globally," he further added.

Meanwhile, prominent economists, such as Former NITI Aayog Vice Chairman Rajiv Kumar, celebrated the GDP growth rate of 8.2 percent in FY24, which surpassed all estimates and forecasts. Kumar highlighted that this marks the third consecutive year of India's growth exceeding 7 percent, outpacing major economies worldwide.

"Well Done India! FY24 GDP growth comes in at 8.2 per cent well above all estimates and forecasts. This is the third year in which Indian economy has grown at 7 per cent+ outpacing all other large economies. Mfg and mining sectors recorded strong growth," Kumar said in a post on X.

Amitabh Kant, India's G20 Sherpa, reiterated that India maintains its status as the fastest-growing large economy globally.

"The latest estimates for FY24 reveal a remarkable Real GDP growth of 8.2 per cent, surpassing the 7.0 per cent growth in the previous year. This exceptional performance is a testament to India's robust economic momentum and resilience," Kant said.

The growth in the January-March period was slightly lower than the 8.6 percent expansion recorded in the December quarter.

"Once again defying expectations, India's GDP for 4th quarter of fiscal year 2023-24 grew at 7.8 per cent & the real GDP growth for FY24 stands at 8.2 per cent. Highest among major economies… again," Economic Advisory Council to the Prime Minister (EAC-PM) member Shamika Ravi said in a post on X.

The robust growth propelled the Indian economy to reach USD 3.5 trillion, setting the stage for achieving the USD 5-trillion target in the coming years.

CRISIL Ltd Chief Economist Dharmakirti Joshi was quoted as saying in a PTI report, "India's growth continues to surprise on the upside. Despite a poor showing by agriculture, provisional estimates peg India's GDP growth for fiscal 2024 at 8.2 per cent. This beats the 7.6 per cent growth estimated by National Statistical Office (NSO) in February."

In a statement, industry body Assocham expressed confidence that the momentum of GDP growth will persist into FY25 as well.

"GDP growth of 8.2 per cent for 2023-24 and 7.8 per cent in the last quarter of the fiscal has beaten even optimistic expectations, helped by a stellar performance of manufacturing, which is expected to sustain momentum in the current financial year as well," Assocham Secretary General Deepak Sood said.

Aditi Nayar, Chief Economist, Head of Research and Outreach at ICRA Ltd, said, "While the growth in India's GDP and GVA moderated to a four-quarter low of 7.8 per cent and 6.3 per cent, respectively, in Q4 FY2024 from the revised prints of 8.6 per cent and 6.8 per cent in Q3, it exceeded both our and market expectations."

The gap between the two narrowed marginally to 148 basis points from 178 basis points in Q3, amidst a notable 22.2 percent growth in net indirect taxes in real terms.

"With such a high growth of net indirect taxes unlikely to sustain in FY25, we expect GDP and GVA growth to print closer to each other, especially in terms of the annual numbers," Nayar said.

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