India’s GDP to grow by 7.3 pc in 2023-24: Govt estimates

New Delhi: The Indian economy is estimated to grow by 7.3 percent in 2023-24 fiscal against 7.2 percent a year ago, mainly due to good show by mining and quarrying, manufacturing, and certain segments of services sectors.

As per the first advance estimates of national income released by the National Statistical Office (NSO) on Friday, the manufacturing sector output is estimated to grow to 6.5 percent in the current fiscal compared to 1.3 percent in 2022-23.

Similarly, mining sector growth is estimated at 8.1 percent in the current fiscal against 4.1 percent in 2022-23.

About 17% of the GDP is accounted for by manufacturing, which is predicted to grow 6.5% year over year in 2023–2024 as opposed to 1.3% the previous year, according to data. Meanwhile, production from construction was expected to increase by 10.7% as opposed to 10% the year before.

However, the rise in farm output, which accounts for 15% of GDP, was observed to have slowed down to 1.8% in the current fiscal year from 4% in the year prior, which affects salaries in rural areas.

In comparison to the provisional estimate of GDP of Rs 272.41 lakh crore for the year 2022–2023 that was issued on May 31, 2023, the GDP at current prices for the year 2023–2024 is anticipated to be Rs 296.58 lakh crore.

The growth in nominal GDP for 2023–2024 is projected to be 8.9%, compared to 16.1% for 2022–2023.

S&P Global Ratings predicts that, India’s major economy will continue to grow at a rapid pace over the next three years, and that it will surpass Germany and Japan to become the third largest in the world by 2030.

On February 1, Finance Minister Nirmala Sitharaman will deliver the interim annual budget, and is anticipated that she can reduce the fiscal deficit from 5.9% of GDP in the current fiscal year while increasing spending on infrastructure, aided by increased tax receipts.