India's GDP growth for the fourth quarter of the current financial year surpassed expectations, standing at 7.8% year-on-year. This growth rate outperformed predictions by most economists and marked an improvement from the 6.1% growth recorded in the same period last year, as well as the 8.4% growth in the previous quarter.
The Reserve Bank of India (RBI) had forecasted a 6.9% growth in real GDP for the fourth quarter of FY24, with a full-year projection of 7.6%. However, the actual growth rate exceeded these projections, demonstrating the resilience of the Indian economy.
Additionally, the Real Gross Value Added (GVA) is estimated to have grown at 6.3% in the final quarter of FY24, contributing to the overall GDP growth.
For the full fiscal year FY24, India's real GDP is estimated to have grown by 8.2%, compared to 7% in the previous fiscal year (FY23). Nominal GDP also witnessed growth, with a rate of 9.6% in FY24 over the previous year.
Key drivers behind India's robust economic growth include increased infrastructure spending and strong urban demand. Despite facing global challenges, the Indian economy has demonstrated resilience and momentum, contributing to its stellar performance.
The upgrade of India's sovereign rating outlook from "stable" to "positive" by S&P Global Ratings further reflects confidence in the country's economic prospects. This upgrade is attributed to expectations of continuity in economic reforms and fiscal policies, irrespective of the outcome of the Lok Sabha election.
