Recent government data unveils India’s resilient economic performance, with a 7.8% growth in the January-March quarter compared to the previous year. However, this figure marks a slight deceleration from the 8.4% expansion recorded in the preceding quarter, signaling a nuanced trajectory.
The manufacturing sector, a key driver of economic activity, exhibited robust growth, expanding by 8.9% year-on-year in the last quarter, albeit down from a revised 11.5% in the previous period. Similarly, agricultural output accelerated to 0.6%, showcasing a marginal improvement from the revised 0.4% growth in the earlier quarter.
The National Statistical Office (NSO) data further indicates a 6.2% GDP expansion during the January-March period of the 2022-23 fiscal year, underlining the economy’s steady stride.
Looking at the broader fiscal year, India’s GDP for FY24 surged by 8.2%, surpassing the 7% growth recorded in the previous fiscal year. This positive trajectory aligns with the NSO’s second advance estimate, which projected a 7.7% growth for FY24.
The upward trajectory in India’s economic outlook is reinforced by projections from Moody’s Ratings, foreseeing a 6.8% growth for the current year and a steady 6.5% for 2025. Citing robust economic expansion and post-election policy continuity, Moody’s maintains a bullish stance, anticipating a sustained annual real GDP growth of 6-7%.
In essence, India’s economic landscape remains resilient, with consistent growth trajectories and positive outlooks bolstering confidence in its long-term economic prospects.
