GDP growth data points to a strong recovery

The First Advance Estimates (FAE) for India's Gross Domestic Product (GDP) growth for FY24 surprises everyone. The Indian economy is expected to grow at 7.3 percent, compared to 7.2 percent in FY23. While this is much higher than the estimates of most – perhaps all – professional forecasters, it is pleasantly surprising that this is even higher than the Reserve Bank of India's (RBI) 7 percent projection, which was seen as overly optimistic . All professional forecasters may need to re-examine their models and assumptions. These data also suggest that economy-wide modeling is on the way

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First print: January 6, 2024 | 12:22 pm IST