Govt ups GDP growth forecast to 7.3% for 2023-24

India’s gross domestic product (GDP) is estimated to grow by 7.3 per cent in 2023-24, up from 7.2 per cent in 2022-23, according to the advance estimate released by the Ministry of Statistics on Friday.

The ministry’s estimate is higher than the RBI’s recently revised forecast of 7 per cent, after the surprise 7.6 per cent growth seen in the July-September quarter on the back of a strong growth in the manufacturing sector.

The Finance Ministry, too, has said it expects GDP growth to “comfortably” exceed its forecast of 6.5 per cent.

“These are early projections for 2023-24,” the National Statistical Office (NSO) said in a statement, noting that improved data coverage, actual tax receipts and spending on state subsidies would have a bearing on subsequent revisions.

Manufacturing, which contributes about 17 per cent of the GDP, is estimated to expand 6.5 per cent year-on-year in 2023-24, compared to 1.3 per cent a year ago, while construction output is seen growing by 10.7 per cent, up from 10 per cent seen in the previous year, according to the latest data.

However, the growth in farm output, which accounts for 15 per cent of the GDP, is seen slowing down to a mere 1.8 per cent in the current fiscal year, from 4 per cent the previous year as erratic monsoon hit crops.