India's GDP Growth to Reach 8% in FY24: SBI Report

New Delhi, Mar 1 (PTI) The GDP growth for the current financial year could be within striking distance of 8 per cent, a study by the State Bank of India (SBI) said on Friday, a day after India posted an 8.4 per cent growth in the December quarter, and revised upwards the estimates for the preceding two quarters.

"The third quarter GDP numbers jolted the psyche and cognitive framework of most in markets, while sweeping some by a pleasant surprise. Clearly, right policy prisms and perspectives can trump irrational expectations bordering fault lines," SBI said in its research report 'Ecowrap'.

It noted that defying all estimates, the economy grew 8.4 per cent in the third quarter of 2023-24 after exhibiting more than 8 per cent growth in the preceding two quarters.

The buoyancy in indirect tax mop-up (32 per cent year-on-year growth), gap between Gross Domestic Product (GDP) and Gross Value Added (GVA) growth widened.

"For fiscal 2023-24 GDP growth is expected to increase 7.6 per cent and GVA growth by 6.9 per cent... we estimate fourth quarter GDP growth at 5.9 per cent, which we believe is an understatement. Thus it is most likely that FY24 GDP growth could be within striking distance of 8 per cent," the SBI study said.

The National Statistical Office (NSO) has revised GDP estimates for the first and second quarters of this fiscal to 8.2 and 8.1 per cent from 7.8 per cent and 7.6 per cent, respectively.

With the revisions, the GDP growth during April-December works out to be 8.2 per cent.

The SBI report further said with the government's efforts to ensure quality of life for all citizens and stopping leakage of benefits through direct benefit transfer, for the first time the per capita GDP at current prices crossed Rs 2 lakh mark in 2023-24.

In constant prices, too, per capita GDP has increased to Rs 1.24 lakh in the current fiscal.