India's GDP Growth Hits 7.8% in Q4 Amid Elections

Just a day before the seventh phase of voting in the Lok Sabha elections, good news has emerged on the economic front.

In the fourth quarter of the fiscal year 2023-24, the GDP growth rate stood at 7.8%. In the same quarter last year, the GDP growth rate was recorded at 6.2%.

India's Gross Domestic Product (GDP) saw a remarkable surge in the final quarter of FY 24. The GDP figures have been released ahead of the election results.

India's GDP grew at a rate of 7.8% in the March quarter, and the government now estimates the overall growth rate for FY 24 to be 8.2%.a

India's Q4 GDP Growth Surpasses RBI's 6.9% Estimate

According to the data released by the National Statistical Office (NSO) of the Ministry of Statistics and Programme Implementation (MoSPI) on Friday, India's Gross Domestic Product (GDP) growth rate for the quarter ending March 31, 2024, exceeded the Reserve Bank of India's (RBI) estimate of 6.9%.

As of the week ending May 24, foreign exchange reserves stood at $648 billion, reflecting a slight decrease of $2 billion compared to the previous week.

Notably, the GDP growth rate in the fourth quarter was 7.8%, and for FY24, it is projected to be 8.2%, indicating the robustness of the Indian economy. The GDP growth rate for the fourth quarter has exceeded all expectations.

Change in Government Will Not Affect GDP Growth

The government's statistical office also reported that the Gross Value Added (GVA), excluding indirect taxes and subsidies, increased by 6.3% during the same period.

These figures highlight strong economic performance ahead of the elections. The six-week-long elections in India will conclude on June 1, with results expected on June 4.

Teresa John, economist at Nirmal Bang Institutional Equities, said India's GDP growth rate will remain strong, no matter which party forms the government in June.