India is anticipated to witness a growth in its gross domestic product (GDP) by 7.3% during the fiscal year 2023-24, marking a slight increase from the 7.2% recorded in 2022-23, according to the advance estimate released by the Ministry of Statistics on Friday.
Surpassing the Reserve Bank of India's (RBI) recent revision to 7%, this estimate signals positive economic momentum, particularly after a surprising 7.6% growth observed in the July-September quarter, driven by robust expansion in the manufacturing sector.
The Finance Ministry shares an optimistic outlook, expecting the GDP growth to comfortably exceed its initial forecast of 6.5%.
"These early projections for 2023-24," stated the National Statistical Office (NSO) in a release, emphasizing that subsequent revisions would be influenced by enhanced data coverage, actual tax receipts, and state subsidies expenditure.
In the upcoming fiscal year, the manufacturing sector, contributing approximately 17% to the GDP, is expected to grow by 6.5% year-on-year, a notable improvement from the 1.3% growth seen in the previous year. Similarly, construction output is projected to expand by 10.7%, up from the 10% recorded in the preceding year, according to the latest data.
On the flip side, the growth in farm output, constituting 15% of the GDP, is anticipated to decelerate to a modest 1.8% in the current fiscal year, down from the 4% growth observed in the previous year due to the adverse impact of erratic monsoons on crops.
(With Agency Inputs)
Read also| Finance Ministry Forecasts Robust GDP Growth Exceeding 6.5% in 2023-24
