India’s GDP: A Sector-Wise Breakdown of India's GDP Growth In FY24 vs FY23

The gross domestic product (GDP) measures of national income and output of a given country's economy. The gross domestic product (GDP) is equal to the total expenditures for all final goods and services produced within the country in a stipulated period of time.

GDP is important because it gives information about the size of the economy and how an economy is performing. The growth rate of real GDP is often used as an indicator of the general health of the economy. An increase in real GDP is generally interpreted as a sign that the economy is doing well. When real GDP is growing strongly, employment is likely to be increasing as companies hire more workers for their factories and people have more money in their pockets. When GDP is shrinking, employment often declines. In some cases, GDP may be growing, but not fast enough to create a sufficient number of jobs for those seeking them.

The Indian GDP grew by 8.2% in the financial year ending March of 2024, well above the initial print of 7.3%, and revised higher from the second estimate of 7.6%, to consolidate India as the fastest-growing major economy in the world. This growth was primarily driven by a significant recovery in the manufacturing sector, which surged by 9.9% compared to a contraction in the prior year. As compared to the financial year 2022-23 it has shown notable improvement. As of Dec 2023, Indian GDP stood at USD 3549.92 Bn compared to USD 3353.47 Bn in March 2023.

Here are the key points of comparison:

Real GDP Growth

• 2023-24: The real GDP, which accounts for inflation, grew by 8.2%.
• 2022-23: The real GDP growth was 7.0%.

Nominal GDP Growth:

• 2023-24: The nominal GDP, which reflects the market value of goods and services produced, grew by 9.6%.
• 2022-23: Nominal GDP had a higher growth rate of 14.2%.

GDP Per Capita

• Dec 2023: GDP per capita stood at USD 2239.25.
• 2024-25: GDP per capita stood at USD 2098.22

Gross Value Added (GVA):

Real GVA increased by 7.2% in 2023-24, compared to 6.7% in 2022-23. The primary drivers were the manufacturing and mining sectors.

Quarterly Growth: In the fourth quarter (January-March 2024), the real GDP grew by 7.8% and the real GVA by 6.3%.

Here is a sector-wise breakdown of India's GDP growth for the financial year 2023-24:

Agriculture, Livestock, Forestry, and Fishing:

• Growth Rate: 3.8%
• This sector saw steady growth, reflecting resilience in the agricultural sector despite challenges like uneven monsoon patterns.

Mining and Quarrying:

• Growth Rate: 7.1%
• There was significant improvement in this sector, driven by higher production and increased demand for minerals.

Manufacturing:

• Growth Rate: 9.9%
• The manufacturing sector rebounded strongly, reversing the contraction of -2.2% in the previous year. This was largely due to increased industrial activity and a recovery in consumer demand.

Electricity, Gas, Water Supply, and Other Utility Services:

• Growth Rate: 6.5%
• This sector experienced stable growth, supported by ongoing infrastructure projects and rising demand for utilities.

Construction:

• Growth Rate: 8.5%
• The construction sector showed robust growth, driven by increased government spending on infrastructure and a revival in real estate activities.

Trade, Hotels, Transport, Communication, and Services related to Broadcasting:

• Growth Rate: 9.2%
• This broad sector, which was hit hard by the pandemic, continued to recover, reflecting improvements in both domestic and international trade.

Financial, Real Estate, and Professional Services:

• Growth Rate: 6.9%
• The financial and real estate sectors saw solid growth, supported by increased economic activity and rising investment.

Public Administration, Defence, and Other Services:

• Growth Rate: 7.4%
• This sector continued to grow, driven by increased government expenditure and services.

This sectoral performance highlights the balanced nature of India's economic recovery in 2023-24, with most sectors contributing positively to overall growth​.

Overall, India's economy showed strong growth momentum in 2023-24, driven by a recovery in manufacturing and continued strength in services. This growth reflects the underlying strength and adaptability of India's economic fundamentals, although challenges such as inflation and global market conditions remain.