What made India clocked highest GDP in last one year?
In Q1 FY24, India’s GDP is estimated to attain a level of Rs 40.37 lakh crore. While, in same period last year, the GDP had attained a level of Rs 36.85 lakh crore. Thereby, growing by 7.8 per cent.
India has clocked highest GDP growth rate of 7.8 per cent in the last one year. In same quarter a year ago, the country had clocked GDP of 13.5 per cent. The growth of 7.8 per cent in the June 2023 quarter can be attributed to increased private consumption expenditure.
In Q1 FY24, India’s GDP is estimated to attain a level of Rs 40.37 lakh crore. While, in same period last year, the GDP had attained a level of Rs 36.85 lakh crore. Thereby, growing by 7.8 per cent.
What led to pickup in GDP?
Services and agricultural sectors have poised increase in growth rate in one year period running to Q1 FY24. Agricultural sector growth rate increased to 3.5 per cent in Q1 FY24. While, Financial, Real Estate and Professional Services sector growth rate increased to 12.2 per cent in the April-June quarter of fiscal 2024. While, manufacturing and construction sectors have disappointed!
India fastest-growing economy!
India remains the fastest-growing major economy as China’s GDP growth in the April-June quarter was 6.3 per cent.
Watchout! GDP expected to fall for second straight financial year in FY24:
In FY23, India had grown at 7.2 per cent. Before that in FY22, the country had grown at 9.1 per cent GDP. These were mainly due to the low base effect. But in FY24, it looks GDP acceleration is about to slow down. RBI has projected FY24 GDP growth to fall to 6.5 per cent.
GDP growth rate in last two financial years:
GDP Growth Rate Since Q1 FY23:
GDP expected to fall in coming quarters
Experts have rung the alarm bells that there might be sluggishness ahead in the economic growth trend of the country.
Experts have opined that due to sluggish export and moderation in government of India’s capital expenditure (capex) programme, the GDP growth rate may taper down in coming quarters of the ongoing financial year.
On Thursday, before, the GDP numbers came, equity benchmark indices, Nifty 50 and Sensex 30 settled in red. Sensex settled 324 points lower at 64,831. While, broader index Nifty 50 settled at 19,253 points.