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Business
India's GDP Climbs 7.8% in FY24, Yet Growth Perception Lags
✍️ Moneycontrol.com
🗓 04 Sep 2026, 11:37 AM
👁 38
India’s gross domestic product rose 7.8% in the fiscal year ending March 2024, the highest growth in two decades, according to the Ministry of Statistics and Programme Implementation. Analysts say the surge masks uneven sectoral performance and rising inflation.
India’s GDP grew 7.8% in the fiscal year ending March 2024, the highest rate in the past two decades, as reported by the Ministry of Statistics and Programme Implementation. The growth was largely driven by the services sector and a rebound in manufacturing output, while consumption spending remained subdued.
The data also revealed that inflationary pressures have been rising, eroding real income gains for households. Economists point out that the headline figure masks uneven performance across sectors, with agriculture and small‑scale industry lagging.
Neelkanth Mishra, a senior economist, notes that the perception of a weak economy stems from persistent price hikes and a slowdown in retail sales, which dampen consumer confidence.
Policy makers are now under pressure to balance growth with price stability, and the Reserve Bank of India may consider tightening monetary policy to curb inflation while supporting the manufacturing sector.
The data also revealed that inflationary pressures have been rising, eroding real income gains for households. Economists point out that the headline figure masks uneven performance across sectors, with agriculture and small‑scale industry lagging.
Neelkanth Mishra, a senior economist, notes that the perception of a weak economy stems from persistent price hikes and a slowdown in retail sales, which dampen consumer confidence.
Policy makers are now under pressure to balance growth with price stability, and the Reserve Bank of India may consider tightening monetary policy to curb inflation while supporting the manufacturing sector.