GDP Of India: Current And Historical Growth Rate, India's Rank In The World - Forbes India (2024)

GDP Of India: Current And Historical Growth Rate, India's Rank In The World - Forbes India (1)
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 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 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.In Q1 FY24, GDP growth surged to 7.8 percent, surpassing many major economies of the world, such as the US, UK, and China. This was an impressive achievement compared to the 6.1 percent growth rate in the preceding quarter. Within various sectors of India, the agriculture sector demonstrated a visible growth rate of 3.5 percent, while the manufacturing sector had 4.7 percent growth.Also Read: Fiscal deficit: Meaning, history in India, causes, current deficit and more
In the Q2 FY24, the GDP growth of 7.6 percent showed a broad-based recovery of India from the pandemic. Especially domestic demand for employment increased in spite of the global risk and unexpected factors. While the agriculture, forestry and fishing industry saw growth of 1.2 percent, the manufacturing sector also saw growth of 13.9 percent compared to Q1 FY24.Q3 FY24 shook everyone as it surpassed the past growth of 7.6 percent to 8.4 percent. This quarter's growth has been the highest since the last five quarters. Growth in certain sectors, like services, manufacturing, and construction, has had quite an impact on the rise of the GDP growth rate. Private consumption has also provided a good surge to the GDP growth rate.

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

  • 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.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%

*As per government of India
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 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)
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 the 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.

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GDP Of India: Current And Historical Growth Rate, India's Rank In The World - Forbes India (2024)


GDP Of India: Current And Historical Growth Rate, India's Rank In The World - Forbes India? ›

India stands in the fifth place in the world GDP for 2024. The United States of America is in the first place in the world GDP rank. Which state has the highest GDP in India? Maharashtra is the wealthiest state in India and has the highest GDP.

What is the rank of India GDP in the world? ›

India stands in the fifth place in the world GDP for 2024. The United States of America is in the first place in the world GDP rank. Which state has the highest GDP in India? Maharashtra is the wealthiest state in India and has the highest GDP.

What is the historical GDP growth rate of India? ›

GDP Annual Growth Rate in India averaged 5.98 percent from 1951 until 2024, reaching an all time high of 22.60 percent in the second quarter of 2021 and a record low of -23.10 percent in the second quarter of 2020.

Is India the world's fastest growing economy? ›

India has the fastest GDP growth in the world

Source: IMF World Economic Outlook, Jan. 2024.

What is the GDP of India in real time? ›

Nominal (current) Gross Domestic Product (GDP) of India is $3,385,090,000,000 (USD) as of 2022.

Is India's GDP growing? ›

These figures surpass the Reserve Bank of India's (RBI) estimate of 7 per cent, according to projections made in its April monetary policy review. GDP growth provisionally stands at 8.2 per cent for the full financial year 2023-24 (FY24), as compared to the growth rate of 7 per cent in FY23.

When was India's GDP highest in history? ›

Between 1st and 17th centuries AD, India is estimated to have had the largest economy of the ancient and medieval world, controlling between one third and one fourth of the world's wealth. During the Mughal period (1526–1858 AD) India experienced unprecedeneted prosperity in history.

What is the GDP of India in the past and future? ›

The statistic shows GDP in India from 1987 to 2023, with projections up until 2029. In 2023, GDP in India was at around 3.57 trillion U.S. dollars, and it is expected to reach six trillion by the end of the decade. See figures on India's economic growth here, and the Russian GDP for comparison.

Which country's economy is growing the fastest in 2024? ›

Out of the world's 62 major economies in Euromonitor International's Macro Model, five emerging Asian countries are expected to have the highest real GDP growth rates in 2024: India, the Philippines, Vietnam, Indonesia and China.

Why is India's GDP so high? ›

The extra push in GDP has not come from consumption or investment— the share of both fell. It has come from a smaller trade deficit and, in a very odd way, net government spending. In policy terms, India's fiscal performance improved.

Is Indian economy growing faster than China? ›

'India to grow faster than China in coming years, attract more investment' | Mint.

How good is India's economy? ›

Contributor. India's economy has been notably resilient amidst the past year's global inflation and supply chain constraints, boasting an impressive growth rate of 7.8% in the 2023–24 fiscal year (FY) and exceeding the average G20 rate of 3.4%.

What is the rank of India in GDP? ›

Economy of India
GDP$3.937 trillion (nominal; 2024 est.) $14.59 trillion (PPP; 2024 est.)
GDP rank5th (nominal; 2024) 3rd (PPP; 2024)
GDP growth8.2% (FY2024) 7.2% (FY2023) 9.7% (FY2022)
GDP per capita$2,731 (nominal; 2024 est.) $10,123 (PPP; 2024 est.)
44 more rows

What is India on world GDP? ›

India is ranked 5th in world's GDP rankings in 2024. India's economy boasts diversity and swift growth, fuelled by key sectors such as information technology, services, agriculture, and manufacturing.

Who has the highest GDP in the world? ›

The United States is the undisputed heavyweight when it comes to the economies of the world. America's gross domestic product in 2022 was more than 40% greater than that of China, the world No. 2. Even more striking, U.S. GDP was over five times that of the next two largest economies, Japan and Germany.

Is India a rich country rank? ›

The top-5 richest countries in the world are: USA, China, Japan, Germany and India.

Which is the fastest growing economy in the world 2024? ›

Fastest Growing Economies of the World
  • United Arab Emirates. GDP - 49,879 Crore USD. ...
  • Egypt. GDP- 38,711 Crore USD. ...
  • Qatar. GDP- 21,957 Crore USD. ...
  • Saudi Arabia. GDP- 1,06,190 Crore USD. ...
  • India. GDP- 3,73,688 Crore USD. ...
  • China. GDP- 19,37,358 Crore USD. ...
  • Thailand. GDP- 57,423 Crore USD. ...
  • Japan. GDP- 4,40,973 Crore USD.
May 6, 2024

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