Overview of India's GDP Growth in 2024

Context

India's remarkable economic journey in 2023 and 2024 reflects its status as a global economic powerhouse, driven by its rich cultural heritage and a population exceeding 1.4 billion.

Key Highlights:

GDP Growth: India's GDP surged by 8.4% in the third quarter of FY24, marking a significant increase compared to the previous year.
Sectoral Growth: The construction sector experienced robust growth, fueled by demand for residential properties. Manufacturing and service sectors also witnessed growth, although concerns lingered over private consumption growth.
Export Contribution: While exports contributed 22.2% to GDP, there was a marginal decline compared to the previous quarter.

Understanding GDP Growth Rate:

GDP growth rate reflects the pace of a country's economic expansion over a specific period, measured annually or quarterly. It signifies economic health, with positive rates indicating growth and negative rates indicating contraction or recession.

Historical GDP and growth rate of India

Financial Year	GDP	GDP Per Capita (Nominal)	GDP Growth
2024 (Q3,FY2024)	$4,112.00B*	$2,845	8.4%
2023	$3,737.00B	$2,610	7.2%
2022	$3,385.09B	$2,389	7.00%
2021	$3,150.31B	$2,238	9.05%
2020	$2,671.60B	$1,913	-5.83%
2019	$2,835.61B	$2,050	3.87%
2018	$2,702.93B	$1,974	6.45%
2017	$2,651.47B	$1,958	6.80%
2016	$2,294.80B	$1,714	8.26%
2015	$2,103.59B	$1,590	8.00%
2014	$2,039.13B	$1,560	7.41%
2013	$1,856.72B	$1,438	6.39%
2012	$1,827.64B	$1,434	5.46%
2011	$1,823.05B	$1,450	5.24%
2010	$1,675.62B	$1,351	8.50%

*As per government of India

GDP per Capita: GDP per capita is a metric for assessing a country's economic prosperity, calculated by dividing GDP by population. India's strong economic fundamentals, including thriving domestic demand and favorable demographic trends, contribute to its status as the fifth-largest economy globally.

India’s rank in GDP*

Rank	Country	GDP (in U.S. dollars)	Annual Growth rate
1	United States of America	28.78 trillion	2.7%
2	China	18.53 trillion	4.6%
3	Germany	4.59 trillion	0.2%
4	Japan	4.11 trillion	0.9%
5	India	3.94 trillion	6.8%

Data and rankings as per International Monetary Fund (IMF)

Fact Box: Calculating GDP

GDP is computed using the formula: Y = C + I + G + (X − M),

Y represents the Gross Domestic Product.
C represents consumption (spending on services, non-durable goods, and durable goods).
G represents government expenditure (salaries of employees, construction of roads, railways, airports, schools, and military expenses)
I denotes investment (spending on housing and equipment)
X-M denotes the difference between total exports and imports (net exports)