W Power 2024

GDP of India: Current and historical growth rate, India's rank in the world

Get insights into India's GDP in 2023. Learn about the economy's growth and potential as India propels itself towards a prosperous future

Published: Mar 11, 2024 09:08:31 AM IST
Updated: Apr 15, 2024 03:24:56 PM IST

GDP of India: Current and historical growth rate, India's rank in the world

In the vast landscape of global economies, India stands out with its meteoric rise and unwavering determination to reach new heights. With its rich cultural heritage and a population of over 1.4 billion people, India has emerged as an economic powerhouse, consistently showcasing its prowess on the global stage. 2023 has proven to be a turning point as India's GDP surges, solidifying its position as a frontrunner in the global economic race.

In this article, we unravel the intricacies of India's GDP growth in 2024. We will delve into the numbers, explore the driving forces behind this remarkable achievement, and gain insights into the implications for India's future.

Also Read: Top 10 largest economies in the world in 2023

India’s current GDP (Q3 FY24)

India’s GDP registered a growth of 8.4 percent in the third quarter of FY24, according to the estimates of the Statistics Ministry. The new numbers showed a remarkable increase of 4.1 percent increase in GDP growth compared to the third quarter of FY23 when it was 4.3 percent.

According to the Ministry of Finance, real GDP recorded a growth of 7.6 percent in FY24. The robust demand for residential fueled the growth of the construction sector by double digits in FY24. The manufacturing and service sectors also registered a growth in Q3. However, private consumption growth at 3.6 remains a worry for the economists.

The share of exports in GDP stood at 22.2 percent in the third quarter. It has registered a marginal decline, compared to the previous quarter.

According to government data, India’s GDP growth rate is higher than the major economies such as Russia, the USA, China, and Japan.

Also Read: Fiscal deficit: Meaning, history in India, causes, current deficit and more

  • India's Current GDP (As of Q3 FY24): $4.11 trillion
  • India's GDP Growth Rate (Q3 FY24): 8.4%
Also Read: Unemployment rate in India (2008 to 2023): Current rate, historical trends and more

What is GDP growth rate

GDP growth rate refers to the pace at which a country's Gross Domestic Product (GDP) expands or increases over a specific period, usually measured annually or quarterly. Gross Domestic Product (GDP) is the market worth of all final services and products produced within its boundaries over a certain period.

The GDP growth rate is calculated by comparing the GDP of one period with the GDP of a previous period. It is expressed as a percentage and provides a measure of the country's economic performance and overall economic health. If the GDP growth rate is positive, the economy is growing; if it is negative, the economy is contracting or in recession.

Also Read: GDP of Indian states and union territories

According to official data released on May 31, the Indian economy recorded a growth of 6.1 percent in the fourth quarter of the fiscal year 2022-23. This strong performance contributed to an annual growth rate of 7.2 percent.

Historical GDP and growth rate of India

GDP Statistics
Financial Year GDP GDP Per Capita (Nominal) GDP Growth
2024 (Q3,FY2024)
$4,112.00B $2,845 8.4%
$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%

In India, the GDP growth rate portrays the fluctuations in the adjusted value of goods and services produced by the country's economy over a given period. India, one of the most robust economies globally, has experienced movements in both upward and downward directions concerning its GDP growth rate in recent years, considering the pre and post-pandemic situations.

Also Read: Foreign Direct Investment (FDI) in India: Inflows in 2023 and last 10 years

GDP per capita

The gross domestic product (GDP) per capita is a metric for evaluating a country's general economic prosperity. GDP per capita is a way to achieve economic well-being that takes into account both the size of a country's economy and its population. The gross domestic product (GDP) divided by a country's population is a useful measure of the level of living and economic prosperity in that country. In many international studies, it is a benchmark against which nations' economies and citizens' standard of life can be evaluated.

India’s rank in GDP

Rank Country GDP (in U.S. dollars) Annual Growth rate
1 United States of America 27.97 trillion 1.5%
2 China 18.56 trillion 4.2%
3 Germany 4.7 trillion 0.9%
4 Japan 4.29 trillion 1%
5 India 4.11 trillion 8.4%

India is now the fifth-largest economy in the world GDP rankings list due to its strong economic foundations, thriving domestic demand, careful financial management, high saving rates, and favourable demographic trends. The country's major economic contributors are traditional and modern agriculture, technology services, the handicraft industry, and business outsourcing.

Calculating GDP

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

  • C represents consumption, which includes spending on services, non-durable goods, and durable goods.
  • G represents government expenditure, which includes salaries of employees, construction of roads, railways, airports, schools, and military expenses.
  • I denotes investment, which consists of spending on housing and equipment.
  • The difference between total exports and imports is referred to as net exports, denoted by (X-M).
  • In this context, Y represents Gross Domestic Product.

Frequently Asked Questions (FAQs)

1. Why is GDP an important economic indicator?

GDP is an essential economic indicator as it provides a measure of the overall economic activity and growth of a country, helping policymakers and analysts understand the health of the economy.

2. How does GDP affect the living standards in India?

GDP growth is often associated with improved standards of living. Higher GDP indicates increased economic output, which can lead to better job opportunities, higher incomes, and improved access to goods and services for the population.

3. What are the main sectors contributing to India's GDP?

The main sectors contributing to India's GDP are agriculture, industry, and services. Agriculture includes farming and related activities, industry includes manufacturing and construction, and services include sectors like finance, healthcare, education, and tourism.

Related Stories

  1. India forex reserves 2023: Exploring current status and historical trends

Post Your Comment
Required, will not be published
All comments are moderated