'Well Done India': Economists Praise 8.2% GDP Growth in FY24

India's economic performance has once again surpassed expectations, with a reported Gross Domestic Product (GDP) growth rate of 8.2% for the fiscal year 2023-24. This achievement marks the third consecutive year that the nation has maintained a growth rate of over 7%, positioning it ahead of other major global economies in terms of expansion. The commendation for this achievement came from several of the country's leading economists, including former NITI Aayog Vice Chairman Rajiv Kumar, who highlighted the significant contributions of the manufacturing and mining sectors to this growth.

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Official data released on Friday confirmed that India's economy grew by 7.8% in the March quarter, culminating in an annual growth rate of 8.2%. This performance not only exceeds all prior estimates and forecasts but also demonstrates India's continued economic resilience and momentum. Amitabh Kant, India's G20 Sherpa, echoed this sentiment by acknowledging India's status as the fastest-growing large economy in the world.

Despite a slight deceleration in growth during the January-March period compared to the 8.6% expansion in the December quarter, India's GDP for the fourth quarter of FY23-24 grew at an impressive rate of 7.8%. This was highlighted by Shamika Ravi, a member of the Economic Advisory Council to the Prime Minister (EAC-PM), who celebrated India's position as the highest among major economies.

The GDP growth has propelled India's economy to a $3.5 trillion valuation, setting a clear trajectory towards achieving a $5 trillion target in the coming years. Dharmakirti Joshi, Chief Economist at CRISIL Ltd, remarked on India's growth surpassing expectations despite challenges in agriculture, with provisional estimates placing GDP growth for FY24 at 8.2%, above the National Statistical Office's (NSO) February estimate of 7.6%.

Industry bodies such as Assocham and FICCI have expressed optimism regarding the sustainability of this growth momentum into FY25. Assocham Secretary General Deepak Sood attributed the impressive GDP figures to stellar manufacturing performance, which is expected to continue driving economic expansion. Similarly, FICCI President Anish Shah lauded the GDP growth rate as a testament to India's resilient and buoyant economy amidst global challenges.

Aditi Nayar, Chief Economist at ICRA Ltd, noted that while GDP and Gross Value Added (GVA) growth moderated to a four-quarter low in Q4 FY24, they still exceeded expectations. The gap between GDP and GVA growth narrowed slightly, amid a significant 22.2% real-term increase in net indirect taxes. However, Nayar anticipates that with such high growth in net indirect taxes unlikely to continue into FY25, GDP and GVA growth rates are expected to align more closely over the annual period.

This collective analysis from India's top economists underscores the nation's robust economic health and its promising outlook for continued growth and prosperity.