A number of factors have boosted growth momentum, including better-than-expected resilience of the Indian economy, sustained government capital spending, stronger corporate and bank balance sheets, visibility of a revival of a private business investment cycle and continued momentum in software services exports despite global growth momentum headwinds said Sunil Sinha, chief economist at India Ratings.
“What stands out is the overall improvement in performance, with only agriculture disappointing at 1.8 per cent. This was expected given the lower Kharif forecast and slower Rabi sowing,” said Madan Sabnavis, chief economist, Bank of Baroda.
According to the official NSO data, manufacturing output is expected to grow at 6.5 percent in the current fiscal year compared to 1.3 percent in FY23. Growth in the mining sector is estimated at 8.1 percent compared to 4.1 percent Percent.
The agriculture sector is forecast to grow 1.8 per cent in FY24, down from 4 per cent last year.
Financial services, real estate and professional services are expected to grow at 8.9 percent, compared to 7.1 percent, while the construction sector is expected to grow at 10.7 percent (versus 10 percent in the last financial year).
The data also showed that nominal GDP is expected to grow at 8.9 percent in FY24 compared to 16.1 percent in FY23.
Nominal GDP takes into account the impact of inflation and therefore the data shows the decline in inflation this year compared to last year.
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