Prior to this, the NSO and the RBI had predicted growth rates of 7.6% and 7%, respectively. The greater growth rate for the entire year was explained by the predicted 7.8% growth in the fourth quarter. 5.9% was the NSO’s first estimate for the quarter.
According to the revised growth estimate, the nation now leads all other major economies. After three years of economic growth exceeding 7%, the real GDP is currently valued at Rs 173.82 lakh crore, up from Rs 160.71 lakh crore the year before. For the entire year, the Gross Value Added (GVA) increased by 7.2%, with a 6.3% gain in the fourth quarter.
Source: X
The broken-down data provides a clearer image of the economy, highlighting both its strengths and weaknesses. Manufacturing expanded at a rate of almost 10%, which was good considering that it was below the highs seen in the second and third quarters. Consumption of steel, cement, and building materials was all within reasonable ranges. However, the industries that generate a lot of jobs—trade, lodging, and transportation—slowed significantly.
The state of agriculture is still dire, just as it was in earlier quarters.After expanding at an even worse 0.4% in the third quarter, it grew at a pitiful 0.6% in the fourth. This was mostly brought on by the monsoon’s failure to produce rain in many regions of the nation last year. It is necessary to view the data in context. In addition to its positive aspects, it reveals several economic problems.
Source: Firstpost
The strong increase in net taxes of more than 20% and the decrease in subsidy outflow in the final quarter of the fiscal year were two major factors contributing to the GDP growth. This is indicated by the gap between GDP and GVA. It has been observed that a similar pattern in GDP growth was also seen in the lead-up to the 2019 elections. The economy continues to raise concerns about the sluggish growth of private final consumption spending despite a robust rate of investment growth.
Its growth in 2023–24 was only 4%, the lowest in the previous twelve years. This could be a result of the state of the labour market, the low demand and income in rural areas, and the ongoing inflationary pressures. The Union budget for the entire year, which is scheduled to be delivered in July, and the monsoon’s performance will be the primary drivers of the economy in the upcoming months.
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