Indian Economy Report 2024

Indian Economy Report 2024

Highlights of the Indian Economy

National Statistical Office (NSO) Report

• According to the Press Note released by the National Statistical Office (NSO) on 29th February, 2024 Ministry According to the Press Note released by the National the Second Advance Estimates (SAE) of National Income 2023-24; Quartely Estimates (QE) of Gross Domestic Product for October-December quarter (03) of 2023-24 along with its expenditure components and Revised Estimates (RE) of National Income Consumption Expenditure, Saving and Capital Formation.

GDP Growth Performance

• Indian economy remained resilient with a robust 7.6% growth rate of GDP in FY 20,23-24, over and above the 7% growth rate in FY 2022-23.

• Double-digit growth ratthe e of the Construction sector (10.7%), followed by a good growth rate of the Manufacturing sector,8has boosted the GDP growth in FY 2023-24.

• On the back of double-digit growth in the Manufacturing Sector (11.6%), followed by a good growth rate of the Construction sector (9.5%), Real GDP grew by 8.4% in 03 of FY 2023-24.

Data Release and Estimates

• These estimates es released both at Constant 2011-12 and Current Prices, in accordance with the release calendar of National Accounts.

• Further, it has been decided to consider the SRE as Financial Estimates. Accordingly, the practice of bringing out the TRE would be discontinued henceforth.

• Therefore, TRE of 2020-21 and SRE of 2021-22 are Final Estimates for the respective years.

Real and Nominal GDP

• Real GDP or GDP at Constant (2011-12) Prices in the year 2023-24 is estimated at 172.90 lakh crore against the First Revised Estimates (FRE) of GDP for the year 2022-23 of 160.71 lakh crore.

• The growth in real GDP during 2023-24 is estimated at 7, compared to 7.0% in 2022-23.

• Nominal GDP or GDP at Current Prices in the year 2023-24 is estimated at 293.90 lakh crore, against the FRE of GDP for the year 2022-23 of 269.50 lakh crore.

• The growth in nominal GDP during 2023-24 is estimated at 9, compared to 14.2% in 2022-23.

Quarterly GDP Estimates

• GDP at Constant (2011-12) Prices in Q3 of 2023-24 is estimated at 43.72 lakh crore, against 40.35 lakh crore in Q3 of 2022-23, showing a growth rate of 8.4%.

• GDP at Current Prices in Q3 of 2023-24 is estimated at 75.49 lakh crore, as against 68.58 lakh crore in Q3 of 2022-23, showing a growth rate of 10.1%.

Advance Estimates Method

• 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 indicator reflecting the performance of sectors.

• The First Advance Estimates (FAE) for 2023-24 were based on very limited data and on using the Provisional Estimates of 2022-23 as benchmark estimates.

Gross Domestic Product Trends

• Real GDP of GDP at constant (2011-12) prices for the years 2022-23 and 2021-22 stands at 160.71 lakh crore and 150.22 lakh crore, respectively, showing a growth of 7.0% during 2022-23 as compared to the growth of 9.7% during 2021-22.

• Nominal GDP or GDP at current prices for the year 2022-23 is estimated at 269.50 lakh crore against 235.97 lakh crore for the year 2021-22, showing a growth of 14.2% during 2022-23 as compared to a growth of 18.9% during 2021-22.

GVA and Industry-wise Analysis

• At the aggregate level, nominal Gross Value Added (GVA) at basic prices has increased by 14.0% during 2022-23 compared to growth of 18.8% during 2021-22.

• Real, GVA i.e., GVA at Constant (2011-12) prices has increased by 6.7% in 2022-23, compared to 9.4% growth in 2021-22.

• The growth rates of Primary sector (comprising Agriculture. Livestock, Forestry, Fishing and Mining & Quarrying), Secondary sector (comprising Manufacturing, Electricity, Gas, Water Supply & Other Utility Services and Construction) and Tertiary sector (Services) have been estimated as 4.4%, 2.1% and 10.0% respectively in 2022-23 as against growth rates of 4.8%, 12.7% and 9.ly in the previous years.

Net National Income (NNI)

• Net National Income (NNI) at current prices for the year 2022-23 stands at 234.39 lakh crore as against 206.53 lakh crore in 2021-22, showing a growth of 13.5% during 2022-23 as compared to a growth of 19.7% in the previous year.

Gross National Disposable Income (GNDI)

• Gross National Disposable Income (GNDI) at current prices is estimated at 273.99 lakh crore for the year 2022-23, while the estimate for the year 2021-22 stands at 239.25 lakh crore, showing a growth of 14.5%the  for the year 2022-23 as compared to the growth of 18.8% in the year 2021-22.

Gross Saving

• Gross Saving during 2022-23 is estimated at 81.50 lakh crore against 73.63 lakh crore during 2021-22.

• Share of Non-financial corporations, Financial corporations, General Government and Household sectors in Gross Savings during 2022-23 stands at 37.3%, 9.3%, (-) 7.5% and 60.9% respectively.

• The rate of Gross Saving to GNDI for 2022-23 is estimated at 29.7% as against 30.8% for 2021-22.

Capital Formation

• Gross Capital Formation (GCF) at current prices is estimated at 56.78 lakh crore for the year 2022-23 as compared to 76.45 lakh crore during 2021-22.

• The rate of GCF to GDP is 32.2% during 2022-23 as against 32.4% in 2021-22.

• In terms of the share of the total GFCF (at current prices), the highest contributor is Non-Financial Corporations,tions followethe d by the Household sector, share of which stood at 44.2% and 41.8% respectively in 2022-23.

• The rate of GCF to GDP at constant (2011-12) prices was 36.7% in 2021-22 and 34.9% in 2022-23.

Consumption Expenditure

• Private Final Consumption Expenditure (PFCE) at current prices is estimated at 164.23 lakh crore for the year 2022-23 as against 143.83 lakh crore in 2021-22.

• In relation to GDP, the PFCE to GDP ratio at current prices during 2021-22 and 2022-isare 61.0% and 60.9% respectively.

• At constant (2011-12) prices, the PFCE is estimated at 87.33 lakh crore and 93.24 lakh crore, respectively, for the years 2021-22 and 2022-23. The corresponding PFCE to GDP ratio for the years 2021-22 and 2022 is 58.1% and 58.0% respectively.

• Government Final Consumption Expenditure (GFCE) at current prices is estimated at 28.84 lakh crore for the year 2022-23 as against 24.72 lakh crore during 2021-22.

• At constant (2011-12) prices, the estimates of GFCE for the years 2021-22 and 2022-23 stand at 14.80 lakh crore and 16.14 lakh crore, respectively.

• GNDI for 2022-23 is estimated at 29.7% as against 30.8% for 2021-22.

Per Capita Estimates

• Per Capita I,ncome i.e., Net National Income at current prices, is estimated at 1,50,906 and 1,6,9,496, respectively, for the years 2021-22 and 2022-23.

• Per Capita PFCE at current prices, for the years 2021-22 and 2022-23 is estimated at 1,05,092 and 11,18,755respectively.

Seventh Economic Census

• The 7th Economic Census was conducted in 2019 under the Capacity Development Scheme of

• As of March 31, 2021, field work has been completed in all states/UTs except West  Bengal, and a few have been facing Covid-19 restrictions and other operational challenges.

• The data was collected under the provisions of the Collection of Statistics Act, 2,008, on a mobile app through door-to-door visits of all household and commercial establishments across the country

Final Thoughts

The data on India’s economy highlights strong growth momentum despite global challenges. The GDP growth driven by the manufacturing and construction sectors reflects a robust economic structure. Estimates of GVA, NNI, and GNDI provide deeper insights into national income trends and economic health. The rise in capital formation and savings shows potential for sustained investment and future development.

Growth in consumption expenditure signals improving living standards and domestic demand. The emphasis on real and nominal GDP comparisons helps understand both price effects and actual growth.

Initiatives like the Seventh Economic Census ensure accurate data for policy planning and governance.