Fundamental tracker: macro indicators are positioned favorably
Emerging markets are growing fast; India emerges stronger
India is already the fastest-growing economy and is on track to feature among the global top three
India today is where China was in 2007
India’s GDP for FY24 surpasses the optimistic estimates made by both the government and private agencies
Source: CMIE, Fisdom Research.
India’s real GDP grew by an impressive 8.2% during 2023-24, surpassing even the most optimistic estimates from both government and private agencies. The National Statistical Office (NSO) released this estimate on May 31, 2024, exceeding the second advance estimate of 7.6% and the previous year’s growth of 7%. GDP growth was consistent throughout the year, with over 8% growth in each of the first three quarters and 7.8% in the last quarter. This marks the third consecutive year with real GDP growth of 7% or more.
The robust GDP growth in 2023-24 was primarily driven by investment spending, with gross fixed capital formation (GFCF) growing at 9% in real terms, compared to a 6.6% increase in 2022-23. This surge was mainly fueled by higher capital expenditure from both central and state governments, focusing on infrastructure development and public projects.
Looking ahead, sustaining this momentum will depend on continued government support, especially in the form of infrastructure spending. Additionally, efforts to stimulate private sector investments and enhance consumption demand will be crucial for maintaining growth momentum.
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