Assessing India GDP Growth Rate Trajectory: Q1 FY24 Insights | PWOnlyIAS 2023

Subject: GS-03: Indian Economy

Context:

• In the 1st quarter (Q1) of financial year 2024 (FY24), Assessing India’s GDP Growth rate witnessed inflationary pressures, a falling rupee, fluctuations in tax revenue streams and an apprehensive outlook on the agriculture sector.

India GDP growth rate of Q1 FY24: Insights and Projections

• The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation released the estimates of GDP for the quarter (Q1) of 2023-24.
• The Q1 data covering the GDP growth rate from April to June of FY24 boasts a nominal growth rate of 8% and a real growth rate of 7.8%.
• Agriculture sector currently reflects an uptick, growing at 3.5%. However, it is unlikely to be sustained due to pressure from the El Niño phenomenon.
• The services industry, with financial, real estate and professional services growing at 12.2%.
• Growth rate is expected to be sustaining around 6.5% for the current financial year.

Calculating Gross Domestic Product (GDP):

• Conventional way to assess a country’s economic situation is to look at the quarterly (three-month) and annual (12-month) GDP growth rate and compare it to previous quarters as well as years.

News Source: The Hindu