India's economy grew by 8.2 per cent in FY24, exceeding 8 per cent in three out of four quarters.
This growth was driven by government spending on infrastructure and sustained private investment, leading to a 9 per cent increase in gross fixed capital formation.
Inflation was managed effectively, averaging 5.4 per cent in FY24, due to administrative and monetary policy responses.
Fiscal balances improved despite expansionary public investment, aided by tax compliance gains and expenditure restraint.
The external balance was pressured by subdued global demand for goods, but strong services exports largely counterbalanced this, resulting in a current account deficit (CAD) of 0.7 per cent of GDP in FY24.
India's economic recovery has been orderly post-pandemic, with real GDP 20 per cent higher than FY20 levels.
Prospects for continued strong growth in FY25 and beyond look good, subject to geopolitical, financial market, and climatic risks.
Published 22 July 2024, 09:08 IST