India GDP expanded by 7.8% surpassing predictions
Unexpected surge follows an 8.4% growth rate in Q3
RBI forecasts a 7% growth for the current fiscal year FY25
The Indian economy experienced robust growth in the fourth quarter of fiscal year 2023-24, with GDP expanding by 7.8%, surpassing predictions. For the entire fiscal year, the real GDP growth stands at a provisional 8.2%, significantly higher than the anticipated 6.7% for Q4. The unexpected surge follows an 8.4% growth rate in Q3 (October-December 2023), which economists believed would not sustain into the fourth quarter.
The Reserve Bank of India (RBI) forecasts a 7% growth for the current fiscal year FY25, positioning India as the fastest-growing major economy and the fifth largest globally. Projections suggest India could become the third-largest economy after the US and China in the coming years.
In FY24, the Indian economy grew at a robust 7.6%, up from 7.0% the previous year, marking the third consecutive year of 7% or above growth.
Investors are closely watching upcoming election results and the mid-July full-year budget for government measures to bolster the economy. The RBI’s record surplus transfer of Rs 2.11 lakh crore ($25.3 billion) may allow increased state spending or reduced fiscal deficit.
The full-year and Q4 GDP growth exceeding expectations were driven by strong investment and subdued private consumption, alongside significant contributions from discrepancies. Despite a high base, India is projected to achieve close to 7% growth in FY25, maintaining its status as the fastest-growing major economy with robust growth and declining inflation.
India GDP expanded by 7.8% surpassing predictions
Unexpected surge follows an 8.4% growth rate in Q3
RBI forecasts a 7% growth for the current fiscal year FY25
The Indian economy experienced robust growth in the fourth quarter of fiscal year 2023-24, with GDP expanding by 7.8%, surpassing predictions. For the entire fiscal year, the real GDP growth stands at a provisional 8.2%, significantly higher than the anticipated 6.7% for Q4. The unexpected surge follows an 8.4% growth rate in Q3 (October-December 2023), which economists believed would not sustain into the fourth quarter.
The Reserve Bank of India (RBI) forecasts a 7% growth for the current fiscal year FY25, positioning India as the fastest-growing major economy and the fifth largest globally. Projections suggest India could become the third-largest economy after the US and China in the coming years.
In FY24, the Indian economy grew at a robust 7.6%, up from 7.0% the previous year, marking the third consecutive year of 7% or above growth.
Investors are closely watching upcoming election results and the mid-July full-year budget for government measures to bolster the economy. The RBI’s record surplus transfer of Rs 2.11 lakh crore ($25.3 billion) may allow increased state spending or reduced fiscal deficit.
The full-year and Q4 GDP growth exceeding expectations were driven by strong investment and subdued private consumption, alongside significant contributions from discrepancies. Despite a high base, India is projected to achieve close to 7% growth in FY25, maintaining its status as the fastest-growing major economy with robust growth and declining inflation.
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