The GDP growth for the current financial year could be within striking distance of 8 per cent, according to a study by the State Bank of India (SBI) released on Friday. This follows India’s impressive 8.4 per cent growth in the December quarter, prompting an upward revision of estimates for the preceding two quarters.
In its research report ‘Ecowrap,’ SBI remarked, “The third quarter GDP numbers jolted the psyche and cognitive framework of most in markets, while sweeping some by a pleasant surprise. Right policy prisms and perspectives can trump irrational expectations bordering fault lines.”
Defying estimates, the economy exhibited 8.4 per cent growth in the third quarter of 2023-24 after surpassing 8 per cent growth in the preceding two quarters. The buoyancy in indirect tax mop-up, with a 32 per cent year-on-year growth, contributed to the positive economic outlook.
“For fiscal 2023-24 GDP growth is expected to increase 7.6 per cent and GVA growth by 6.9 per cent… we estimate fourth-quarter GDP growth at 5.9 per cent, which we believe is an understatement. Thus it is most likely that FY24 GDP growth could be within striking distance of 8 per cent,” stated the SBI study.
The National Statistical Office (NSO) has revised GDP estimates for the first and second quarters of this fiscal to 8.2 and 8.1 per cent from 7.8 per cent and 7.6 per cent, respectively, resulting in an overall growth rate of 8.2 per cent for April-December.
The SBI report also highlighted the government’s efforts to enhance the quality of life for citizens and prevent benefit leakages through direct benefit transfer. For the first time, the per capita GDP at current prices crossed the Rs 2 lakh mark in 2023-24. In constant prices, per capita GDP has also increased to Rs 1.24 lakh in the current fiscal.
