India's GDP Growth Rate 2024, GDP of India in Last 10 years

India’s GDP Growth Rate 2024-25, GDP of India in Last 10 years

In a recent report, the Ministry of Finance projected India's GDP growth to be nearly 7% for 2024-25. Check here all about India's GDP Growth Rate 2024 and GDP of India in Last 10 years.

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Context: The National Statistical Office (NSO) raised India’s real GDP growth estimate for this year to 7.6% from the 7.3% projected last month.

India Q3 GDP Data Highlights: Indian economy Grows by 8.4%

India’s economy grew fast in the last few months of 2023. It grew by 8.4%, which is a big number. This shows that India’s economy is strong and getting stronger. Experts think India’s economy will keep growing. This makes India a good place for other countries to invest and do business.

Previous year revisions:
- 2022-23: 7% (from 7.2%)
- 2021-22: 9.7% (from 9.1%)
GVA growth for 2023-24:9% (Down from 7% previously estimated for 2022-23)

Other Important Key Points of India’s GDP Growth
GDP growth breakdown	Q1 & Q2: 8.2% and 8.1% (revised) Q3:4% Q4 (projected): 5.9% (lower than expected)
GVA growth in Q3	6.5% (lower than revised estimates of 8.2% and 7.7% for Q1 and Q2)
Private consumption	Q3: 3.5% (weak growth) FY 2023-24 (projected): 3%
Farm sector	Q3: negative growth (-0.8%) FY 2023-24 (projected): 0.7% (down from 4.7% in 2022-23)
Positive sectors	Construction: 10.7% growth Manufacturing: 8.5% growth (recovery from 2022-23 decline) Mining:1% growth (a significant improvement over 2022-23)
Employment sector concerns	Trade, hotels, transport, etc.: GVA growth is expected to fall from 12% (2022-23) to 6.5% (2023-24)

India’s GDP Growth Rate in Two Phases (1950-2024)

The Indian Growth Story can be categorised into two-phase to see the key drivers of growth:

Phase 1 (1950-2014)

Low GDP growth below 5% for the last two years.
High food inflation.
Structural constraints hindering growth:
- Slow project decision-making.
- Inefficient subsidies.
- Large informal sector.

Phase 2 (2014-2024): Transformative Growth

Numerous structural reforms strengthened macroeconomic fundamentals.
India became the fastest-growing G20 economy.
Job creation and impressive post-pandemic recovery.
Key reforms:
- Goods and Services Tax (GST)
- Insolvency and Bankruptcy Code (IBC)
- Infrastructure development
- Demonetization, credited for boosting cashless payments.

Image Credit: PIB

Check here: Economic Survey 2024 (Pre-General Election)

GDP Growth of India 2023-24

After a contraction in FY21 due to the pandemic, the Indian economy has witnessed two consecutive years of growth exceeding 7 per cent, with indications pointing towards a third year of similar growth in FY24.
In the first half of the current fiscal year, the economy has expanded by 7.6 per cent in real terms compared to the same period in FY23.
Subject to unforeseen global developments, and considering historical growth trends in the second half, there’s a possibility that the overall growth rate for the fiscal year could surpass the Reserve Bank of India’s (RBI) projection of 7 per cent.
According to the First Advance Estimates released by the National Statistical Office, India’s real GDP is anticipated to grow by 7.3 per cent in FY24, higher than the forecasts provided by various national and international agencies.
India’s real GDP is estimated to grow at an average of 7.9 per cent between FY22 and FY24. Very few economies in the world, if any, have maintained the post-Covid recovery as consistently as the Indian economy has done.

Image Credit: PIB

India Remains Fastest-Growing Major Economy

The Finance Ministry has officially declared India as the fastest-growing major economy globally. In the July-September quarter of 2023-24, India recorded an impressive 7.6% economic growth, propelled primarily by stellar performances in the manufacturing, mining, and services sectors.

Key Contributors to Growth

Several factors have been instrumental in India’s economic surge, including robust domestic fundamentals, low inflation expectations, a surge in investment demand, a notable uptick in industrial activity, and sustained strength in domestic demand.

Global Economic Impact

India’s growth trajectory is poised to leave a substantial imprint on the global stage. Projections indicate that over the next five years, India’s growth is expected to contribute significantly, accounting for 12.9% of global economic expansion. This surpasses the projected share of the United States, which stands at 11.3%. India’s economic prowess positions it as a key driver of global growth in the coming years.

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What is GDP of India?

GDP is the total monetary or market value of all finished goods and services produced within a country’s borders in a given time period. It serves as a comprehensive scorecard of a country’s economic health because it is a broad measure of overall domestic production. The government changed the base year for national accounts in January 2015 from the previous base year of 2004-05 to the new base year of 2011-12 and national accounting’s base year had already undergone revision in January 2010.

The Gross Domestic Product (GDP) at factor cost was abandoned in favour of the gross value added (GVA) at basic prices adopted by other countries in the new series by the Central Statistical Office (CSO).

Real vs Nominal GDP

Aspect	Nominal GDP	Real GDP
Definition	Total market value of all final goods and services produced in a country during a specific period, calculated using current market prices.	Economic output adjusted for inflation, reflecting the actual quantity of goods and services produced.
Adjustment	No adjustment for inflation. Reflects current year prices.	Adjusted for inflation to reflect the constant prices over time.
Measurement	Measures the current market value of production.	Measures the actual volume of production.
Use in Analysis	Useful for current economic assessment but can be misleading for comparisons over time or across countries due to inflation.	Provides a more accurate comparison of economic performance over time by isolating real output from price changes.
Calculation	Calculated based on current prices without adjusting for inflation.	Calculated using a price index like the Consumer Price Index (CPI) to adjust nominal GDP for inflation, showing the real value of output.

India’s GDP Growth Rate Last 10 years

In 10 years, India has moved from the 10th largest economy of the world to the 5th largest economy of the world. In 10 years, India is now seen as a country with immense potential which is backed by impressive performance.” India’s GDP Growth rate in the last 10 years has been at an average Growth rate of 6-7 per cent. From 2006 to 2023, India averaged 6.15 per cent, with a high of 8.7 per cent in 2022 and a low of -6.6 per cent in 2021.

India surpassed the United Kingdom to become the world’s fifth-largest economy. The only countries with economies larger than India’s are the United States, China, Japan, and Germany. In an uncertain world, real GDP growth of 6-6.5% is the new normal, and India is on track to become the third-largest economy by 2029. The table below shows India’s GDP growth rate over the last 10 years as per the Economic Survey:

Year	GDP Growth Rate
2014-15	8.0
2015-16	8.2
2016-17	7.2
2017-18	7.1
2018-19	4.5
2019-20	3.7
2020-21	-6.6
2021-22	8.7
2022-23	7.0
2023-24	6.0-6.8

It’s important to note that the GDP Growth rate estimates for 2023-24 are subject to change as data becomes available, and the policies have had a significant impact on the Indian economy. However, the estimates suggest India’s economy is expected to rebound strongly in the fiscal year of 2023-24.

India's GDP Growth Rate FAQs

Is India GDP growing?

The National Statistical Office (NSO) anticipates a marginal easing in the growth of Gross Value Added (GVA) in the economy, from 7% in 2022-23 to 6.9% this year. Additionally, it forecasts nominal GDP growth to reach 8.9%, which is lower than the Budget estimate of 10.5%.

In which year India GDP was highest?

India's highest GDP growth year was in 2010, when the economy expanded by around 10.3%

Is India's GDP growth good?

GDP is significant since it provides information on the size and health of an economy. Real GDP growth is frequently used as a gauge of the economy's overall health. In general, a growth in real GDP is seen as a positive indicator of the health of the economy.