India’s Economy Grew by 7.8% in Q1 2024, Down from 8.4% in Previous Quarter

India’s economy expanded by 7.8% in the January-March quarter of 2024 compared to the same period a year earlier, according to government data. This growth is slightly lower than the 8.4% growth recorded in the previous quarter and below the 8.6% expansion seen in the December quarter of 2023.

The manufacturing sector saw an 8.9% year-on-year increase in output for the three months ending in March, down from the revised 11.5% growth in the previous quarter. Agricultural output growth improved to 0.6% from a revised 0.4% in the previous quarter.

Data from the National Statistical Office (NSO) indicated that India’s GDP grew by 6.2% in the January-March period of the 2022-23 fiscal year. For the full fiscal year 2023-24, the Indian economy expanded by 8.2%, up from 7% growth in 2022-23. The NSO’s second advance estimate had projected India’s growth at 7.7% for 2023-24.

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Moody’s Ratings projects India to grow by 6.8% in the current year and 6.5% in 2025, citing strong economic expansion and policy continuity post-elections. “We believe the Indian economy should comfortably register 6-7% annual real GDP growth and we forecast around 6.8% growth,” Moody’s stated.

In comparison, China’s economy grew by 5.3% year-on-year, while the US economy expanded at an annualized rate of 1.3% in the March quarter, amidst signs of easing inflation.