The Indian economy is anticipated to experience a growth of 7.3 percent in the fiscal year 2023-24, slightly higher than the 7.2 percent recorded in the previous year. This growth is primarily attributed to the strong performance seen in mining, quarrying, manufacturing, and certain service sectors.
According to the initial advance estimates released by the National Statistical Office (NSO), the manufacturing sector is projected to witness a notable rise of 6.5 percent in the ongoing fiscal year, a substantial improvement from the 1.3 percent growth seen in 2022-23. Similarly, the mining sector is anticipated to grow by 8.1 percent this fiscal, compared to 4.1 percent in the previous year.
The financial services, real estate, and professional services sectors are also expected to exhibit significant growth, projected at 8.9 percent for this fiscal year compared to 7.1 percent in FY23.
The NSO statement mentioned that the Real GDP at Constant (2011-12) Prices for 2023-24 is estimated to reach Rs 171.79 lakh crore, as opposed to the provisional GDP estimate of Rs 160.06 lakh crore for 2022-23.
These estimates from NSO surpass the 7 percent GDP growth projection by the Reserve Bank of India (RBI) for the current fiscal year. Additionally, the nominal GDP at Current Prices for 2023-24 is projected at Rs 296.58 lakh crore, a rise from the provisional estimate of Rs 272.41 lakh crore for 2022-23.
The growth in nominal GDP during 2023-24 is expected to be 8.9 percent, a decline from the 16.1 percent growth recorded in the previous fiscal year. The current estimations suggest that the economy’s size during 2023-24 could be around Rs 296.58 lakh crore or approximately USD 3.57 trillion (calculated at Rs 83/USD).
However, the agricultural sector is predicted to witness a lower growth rate of 1.8 percent in the ongoing fiscal year, down from the four percent expansion seen in the previous financial year. Furthermore, the trade, hotel, transport, communication, and broadcasting-related services segment is estimated to grow at 6.3 percent, a decrease from the 14 percent growth recorded in 2022-23.