The “Half-Yearly Economic Review 2023-24-November 2023” released by the Department of Economic Affairs (DEA), Ministry of Finance, mentioned that India’s real Gross Domestic Product (GDP) grew by 7.7% in the first half (H1)of financial year 2023-2024 (FY24). With this, India is expected to achieve a growth rate of over 6.5% in FY24.
- India’s real GDP grew by a 7.6% on a year-on-year (YoY) basis in 2nd quarter (Q2) of FY24
Key Points:
i.The GDP growth during H1 of FY 24 was led by the strong domestic demand for consumption and investment.
ii.Private Final Consumption Expenditure (PFCE) increased by 4.5%, reaching 60.4% of GDP, the highest since FY12, excluding FY21.
iii.The share of Gross Fixed Capital Formation (GFCF) in GDP (Current Prices) increased from 29.1% in H1 of FY23 to 29.6% in H1 of FY24.
iv.The Centre’s capex grew by 33.7% in April-October FY24 over the corresponding period in FY23.
v.GVA (Gross Value Added) increased by 7.4% in Q2FY24, registering the H1 growth of 7.6%
in FY24. The industry segment (components of GVA) registered a growth of 9.3% in H1FY24.
- This was driven by solid growth of 7.6%, 9.3%, and 10.5% in the sub-components mining and quarrying, manufacturing, and construction, respectively.
vi.Index of Industrial Production (IIP) grew by 6.1% in H1 of FY24, with notable growth in capital goods and construction sectors.
vii.The Services sector grew by 8% in H1 of FY24, with positive performance in services exports.
Highlights:
i.Continued growth momentum expected in Q3 and Q4 of FY24.
ii.Unemployment rate decreased to 6.6% in H1FY24 from 7% in H2FY23.
iii.Merchandise exports contracted by 8.8% in H1FY24.
iv.Overall trade deficit reduced to USD 39.9 billion in H1FY24 from USD 75.3 billion in H1FY23.
v.Gross FDI inflows to India were 15.9% lower in H1FY24.
vi.Artificial intelligence (AI) -related projects accounted for 26.2% of global investments in the sector since 2016.
vii.Inflation eased to 5.5% in H1FY24 from 7.2% in H1FY23.
viii.Urban unemployment rate decreased from 7.4% in H1FY23 to 6.6% in H1FY24.
ix.Government’s net tax revenue rose by 11.2% YoY to Rs 13 lakh crore in H1FY24.
About Ministry of Finance:
Union Minister– Nirmala Sitharaman(RajyaSabha, Karnataka)
Minister of State– Bhagwat Kishanrao Karad; Pankaj Chaudhary
