India on track to grow by 8% or more in quarter ending March 31, says FM Nirmala Sitharaman

India’s gross domestic product (GDP) is on track to grow by 8% or more in the quarter ending March 31, Finance Minister Nirmala Sitharaman said at an event on Saturday. The economy is expected to show the same rate of year-on-year expansion for the 2023/24 financial year, she added, citing the impact of improved inflation management and macroeconomic stability.

“Hopefully the fourth quarter … will also have (growth) of 8% or above 8% resulting in 2023/24 having an average growth in GDP of 8% or over 8%,” Sitharaman said during the event in Mumbai.

RBI in its March bulletin echoed the FM's estimation when it said the country can sustain 8% annual GDP growth and the conducive macroeconomic configuration may become a launching pad for a step-up in the country's growth trajectory. Between 2021-24, gross domestic product (GDP) growth has averaged above 8%.

The global economy is losing steam, with growth slowing in some of the most resilient economies and high-frequency indicators, pointing to further levelling in the period ahead, said the article authored by a team led by RBI Deputy Governor Michael Debabrata Patra.

India’s GDP data for the Jan-March quarter is due to be released on May 31.

Asia’s third-largest economy grew 8.4% in the October-December quarter year-on-year, outpacing the 7.6% growth recorded for the previous quarter.

India’s economy is projected to grow at 7.6% in the current fiscal year to March 31, according to the latest government estimates.