India’s gross domestic product (GDP) is estimated to grow by 7.3% in 2023-24, up from 7.2% in 2022-23, the Ministry of Statistics and Programme Implementation said on Friday.

Real GDP is estimated to attain a level of Rs 171.79 lakh crore, as against the Provisional Estimate of GDP for the year 2022-23 of Rs 160.06 lakh crore, released on 31 May, 2023.

The nominal GDP in 2023-24 is estimated at Rs 296.58 lakh crore, as against the Provisional Estimate of GDP for the year 2022-23 of Rs 272.41 lakh crore, released on 31 May, 2023. The growth in nominal GDP during 2023-24 is estimated at 8.9% as compared to 16.1% in 2022-23.

The statistics ministry’s first advance estimate of growth this year is even higher than the Reserve Bank of India’s (RBI) recently revised forecast of 7%. The Finance Ministry has also projected the growth to exceed its forecast of 6.5%.

The Advance Estimates of National Income are indicator-based and are compiled using the benchmark-indicator method i.e. the estimates available for the previous year (2022-23) are extrapolated using the relevant indicators reflecting the performance of sectors.

The manufacturing sector is set to grow to 6.5% from 1.3% in 2022-23, and is set to drive growth higher this year, with the construction sector posting an even more impressive growth rate of 10.7% on top of a 10% expansion in 2022-23.

The RBI has also released data saying India’s forex reserves jumped by $2.759 billion to $623.2 billion in the week ended December 29.

In the previous reporting week, the overall reserves had increased by $4.471 billion to $620.441 billion.

For the week ended 29 December, the foreign currency assets, a major component of the reserves, increased by $1.869 billion to $551.615 billion, as per the data from the RBI.

The United Nations, through its UN World Economic Situation and Prospects (WESP) 2024 report, said in 2024, India is projected to grow at 6.2% supported by robust domestic demand and strong growth in the manufacturing and services sectors.

This growth is slightly lower than the 6.3% estimate for 2023, amid robust domestic demand and strong growth in the manufacturing and services sectors, the report said.