India Economy

GDP Growth, Economic Indicators, Budget & Fiscal Policy

GDP Overview

Nominal GDP
$3.94 Trillion

2023-24 Estimate

GDP Growth
7.6%

2023-24

Per Capita Income
$2,850

2023-24

Global Rank
5th

Largest Economy

Key Economic Indicators

Inflation (CPI)
4.85% Within Target

March 2024

Fiscal Deficit
5.8% Above Target

% of GDP (2023-24)

Current Account Deficit
1.2% Manageable

% of GDP (Q3 2023-24)

Unemployment Rate
6.8% Moderate

Urban (Dec 2023)

Sectoral Contribution to GDP

Services

55%

IT, Finance, Tourism, etc.

Industry

31%

Manufacturing, Construction, etc.

Agriculture

14%

Crops, Livestock, Forestry, etc.

Budget & Fiscal Policy

Union Budget 2024-25 Highlights

Capital Expenditure

₹11.11 Lakh Crore

11.1% increase from previous year

Fiscal Deficit Target

5.1% of GDP

Aimed at fiscal consolidation

Direct Tax Collection

₹19.45 Lakh Crore

17.7% growth over previous year

Key Policy Initiatives

Production Linked Incentive (PLI) Scheme

Boost manufacturing in key sectors

National Infrastructure Pipeline

₹111 lakh crore investment by 2024-25

GST Revenue Stabilization

Monthly collections consistently above ₹1.5 lakh crore

Digital Payment Promotion

UPI transactions exceeding 10 billion monthly

Economic Outlook

Growth Projections

India is projected to remain the fastest-growing major economy in the world, with growth expected to be around 7% in the medium term. Key growth drivers include:

  • Strong domestic consumption demand
  • Increased public capital expenditure
  • Robust services exports
  • Digitalization and formalization of economy
  • Manufacturing revival through PLI schemes
Challenges
  • Global economic slowdown affecting exports
  • Geopolitical tensions impacting commodity prices
  • Need for job creation in formal sector
  • Climate change and agricultural sustainability
IMF Growth Forecast
6.5%

2024-25

World Bank Projection
6.6%

2024-25

RBI Estimate
7.0%

2024-25