Preliminary estimates put GDP growth at 7.3% in 2023-24

India's economy grew by 7.2 percent in 2022/23 and by 8.7 percent in 2021/22. (Representative)

India's economy is expected to grow 7.3 percent in the current fiscal year ending in March, the highest rate among the world's major economies, helped by government spending and a pick-up in the manufacturing sector, the National Bureau of Statistics said on Friday.

The first advance estimates of annual gross domestic product come after the Reserve Bank of India (RBI) last month raised its growth forecast to 7 percent from an earlier estimate of 6.5 percent.

“These are early forecasts for 2023/24,” the National Statistics Office (NSO) said in a statement, noting that improved data coverage, actual tax revenues and spending on government subsidies would impact later revisions.

India's economy grew by 7.2 percent in 2022/23 and by 8.7 percent in 2021/22.

Manufacturing, which accounts for about 17 percent of GDP, is expected to grow 6.5 percent year-on-year in 2023/24, compared to 1.3 percent last year, while construction output grew 10.7 percent. Data showed the increase was 10 percent higher than last year.

However, growth in agricultural production, which contributed about 15 percent to GDP, slowed to 1.8 percent in the current fiscal from 4 percent last year, impacting rural wages.

India posted faster-than-expected economic growth of 7.6 percent year-on-year in the September quarter after growing 7.8 percent in the previous quarter, prompting many private economists to revise their full-year estimates upward.

S&P Global Ratings expects, among other things, that India will remain the fastest-growing major economy over the next three years and become the world's third-largest economy by 2030, overtaking Japan and Germany.

Finance Minister Nirmala Sitharaman will present an interim annual budget on February 1 and is expected to increase spending on infrastructure, supported by rising tax revenues, while aiming to reduce the fiscal deficit from 5.9 percent of GDP in the current fiscal.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)