NEW DELHI: The government expects the GDP to grow 7.3% in FY24, much higher than most estimates. This growth outlook is even higher than the Reserve Bank of India’s prediction of 7% for the current financial year. In FY23, the real GDP growth was estimated at 7.2% but this figure may change after the revised estimates are released on February 29, 2024.
Most estimates had pegged the GDP to grow at 6.5-7% in FY24. The government’s higher-than-expected growth is driven largely by investment growth, though private consumption continues to trail the overall GDP growth rate. Gross fixed capital formation, or investments in asset creation, is estimated to grow at 10.3%, while private consumption may expand 4.4%. The government’s final consumption expenditure is expected to grow at 4.1%.
On the supply side, agriculture growth has slowed down to 1.8% in FY24 as against 4% in FY23. Industrial sector and manufacturing sectors are estimated to grow at 7.9% and 6.5%, respectively, in FY24. Construction has emerged as one of the key growth drivers with a 10.7% growth in the current fiscal.