Finance Minister Nirmala Sitharaman has kept the nominal GDP growth target at 10.5 per cent for the fiscal year 2024-25, according to the new government’s first budget. This estimate anticipates nominal GDP to decline slightly to Rs 326.4 lakh crore in FY25, from the Rs 327.7 lakh crore target in the Interim Budget.
In FY 2023-24, nominal GDP growth averaged 9.6 per cent, rising from Rs 269.5 lakh crore to Rs 295.4 lakh crore, based on provisional estimates by the National Statistical Office released on May 31. This was a slowdown from the 14.2 pe rcent growth in the previous year. Real GDP, meanwhile, grew by 8.2 per cent in FY24, compared to 7 per cent in the previous year.
“Our economy has shown remarkable resilience in a globally uncertain environment,” said Sitharaman. “This growth reflects our effective policies and ongoing efforts towards achieving broad-based, inclusive economic development.”
Private consumption expenditure grew by 4.0 per cent in FY 2023-24, bolstered by strong urban demand and a recovery in rural areas. The Reserve Bank of India projects a growth rate of 7.2 per cent for the current fiscal year.
