'Well done India': Top economists laud 8.2% GDP growth in FY24

The country's leading economists, including Former NITI Aayog Vice Chairman Rajiv Kumar, on Friday hailed the GDP growth rate of 8.2% in FY24, which was "above all estimates and forecasts".

Kumar said this is the third year in which India has grown at over 7%, outpacing all other large economies.

India's economy grew 7.8% in the March quarter, pushing up the annual growth rate to 8.2%, according to official data released on Friday.

"Well Done India! FY24 GDP growth comes in at 8.2% well above all estimates and forecasts. This is the third year in which Indian economy has grown at 7%+ outpacing all other large economies. Manufacturing and mining sectors recorded strong growth," Kumar said in a post on X.

India's G20 Sherpa Amitabh Kant also said India continues to reinforce its position as the fastest-growing large economy in the world.

"The latest estimates for FY24 reveal a remarkable Real GDP growth of 8.2%, surpassing the 7.0% growth in the previous year. This exceptional performance is a testament to India's robust economic momentum and resilience," Kant said.

Growth in the January-March period was lower than the 8.6% expansion in the December quarter.

"Once again defying expectations, India's GDP for 4th quarter of fiscal year 2023-24 grew at 7.8% and the real GDP growth for FY24 stands at 8.2%. Highest among major economies… again," Economic Advisory Council to the Prime Minister (EAC-PM) member Shamika Ravi said in a post on X.

The growth propelled the Indian economy to $3.5 trillion and set the stage for achieving the $5-trillion target in the next few years.

CRISIL Ltd Chief Economist Dharmakirti Joshi said, "India's growth continues to surprise on the upside. Despite a poor showing by agriculture, provisional estimates peg India's GDP growth for fiscal 2024 at 8.2%. This beats the 7.6% growth estimated by National Statistical Office (NSO) in February."

Industry body Assocham in a statement said the GDP growth momentum will continue in FY25 as well.

"GDP growth of 8.2% for 2023-24 and 7.8% in the last quarter of the fiscal has beaten even optimistic expectations, helped by a stellar performance of manufacturing, which is expected to sustain momentum in the current financial year as well," Assocham Secretary General Deepak Sood said.

FICCI President Anish Shah said, "The GDP growth rate of 8.2% for FY24 and 7.8% for Q4 FY24 is the highest among the major economies of the world, making India the fastest growing major economy globally. It is a reaffirmation of the India story as it shows Indian economy to be resilient and buoyant despite global challenges."

Aditi Nayar, Chief Economist, Head of Research and Outreach at ICRA Ltd, said, "While the growth in India's GDP and GVA moderated to a four-quarter low of 7.8% and 6.3%, respectively, in Q4 FY24 from the revised prints of 8.6% and 6.8% in Q3, it exceeded both our and market expectations."

The wedge between the two narrowed only slightly to 148 bps from 178 bps in Q3, amid the high 22.2% growth in net indirect taxes in real terms, she said.

"With such a high growth of net indirect taxes unlikely to sustain in FY25, we expect GDP and GVA growth to print closer to each other, especially in terms of the annual numbers," Nayar said.