In the March quarter of 2022-23 fiscal, the country’s GDP expanded 6.1 per cent, as per May 31, 2023 estimates. The growth for full fiscal 2022-23 was 7 per cent.
(Representational Photo: iStock)
The rating agency ICRA on Tuesday projected India’s GDP growth to moderate to a four-quarter low of 6.7 per cent in March quarter of 2023-24 fiscal. For the 2023-24 fiscal, the rating agency estimates GDP growth to come in at 7.8 per cent.
In the March quarter of 2022-23 fiscal, the country’s GDP expanded 6.1 per cent, as per May 31, 2023 estimates. The growth for full fiscal 2022-23 was 7 per cent.
For the fourth quarter, the GDP number and the provisional estimates for the 2023-24 fiscal are scheduled to be released on May 31.
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ICRA said that the gap between gross domestic product (GDP) and gross value added (GVA) growth is likely to moderate to 100 basis points (bps) in Q4 FY2024 from the particularly high of 185 bps in the previous quarter.
This is on account of an expected lower expansion in the net indirect taxes in the March quarter owing to a narrower dip in the subsidy outgo, it said.
GDP and GVA growth is likely to print at 7.8 per cent and 7 per cent respectively for the full-year FY2024, the ICRA said.
Unless the growth for nine months of FY 2023-24 is revised, it added.
Investment activity was healthy in the March quarter of FY2024, amidst a mixed trend displayed by various investment-related lead indicators.
There was a surge in new project announcements to the second-highest quarterly level owing to the state investor meets held in January 2024 and an appreciable increase in completions of both private and government-led projects, it said.
Another rating agency, India Ratings and Research (Ind-Ra), has forecast a 6.7 per cent GDP growth rate for India in the fourth quarter (January-March 2024) of the 2023-24 fiscal year.
For the entire fiscal year 2023-24, Ind-Ra expects GDP growth to be between 6.9 per cent and 7per cent.
The government will release the official GDP figures for Q4 FY24 and provisional estimates for FY24 on May 31st.
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