India's GDP Forecast to Rise 7.3% in 2023-24, Buoyed by State Spending and Manufacturing

The Indian economy is on track for solid growth of 7.3% in the current fiscal year ending March 2024, outpacing most major global economies, fueled by increased government spending and a pickup in manufacturing, according to the National Statistical Office (NSO).

In its first advance estimates of national accounts released Friday, the NSO projected real Gross Domestic Product (GDP) at constant (2011-12) prices to reach Rs 171.79 lakh crore in 2023-24, compared to Rs 160.06 lakh crore in the previous year. This translates to a projected growth rate of 7.3%, slightly higher than the 7.2% recorded in 2022-23.

The growth in real GDP during 2023-24 is estimated at 7.3% compared to 7.2% in 2022-23, the NSO statement said.

Nominal GDP, which reflects the value of goods and services produced at current market prices, is also expected to see healthy growth, rising from Rs 272.41 lakh crore in 2022-23 to an estimated Rs 296.58 lakh crore in 2023-24. However, the growth rate in nominal terms is projected to moderate to 8.9% from 16.1% in the previous year.