Key points
- Real GDP grew 8.2% in the provisional estimate, led by public investment and manufacturing.
- The repo rate was unchanged at 6.50% for the entire year; CPI inflation eased to 5.4%.
- The Nifty 50 rose 28.6%; the 10-year yield eased to about 7.05%.
- The rupee was one of the more stable major currencies, ending at about 83.37 per US dollar.
The year in brief
FY2023-24 combined strong growth with gradually easing inflation. Real GDP grew 8.2% in the provisional estimate, supported by heavy government capital expenditure on infrastructure and resilient manufacturing and construction activity. Under the new GDP series with base year 2022-23, released in February 2026, growth for the year is now estimated at 7.2%.
Food inflation remained volatile because of uneven rainfall, but core inflation fell steadily through the year.
| Indicator | Value | Note |
|---|---|---|
| Real GDP growth | 8.2% | Provisional estimate, May 2024; 7.2% under the new 2022-23 base series (Feb 2026). |
| CPI inflation, annual average | 5.4% | MoSPI / RBI |
| RBI repo rate, year-end | 6.50% | RBI |
| 10-year government bond yield, year-end | ≈7.05% | Approximate, last trading day |
| Nifty 50, year-end close | 22,326.90 | +28.6% over the year, price only |
| USD/INR, year-end | ≈83.37 | Rupee weaker by ≈1.4% |
| Central government fiscal deficit | 5.6% of GDP | Provisional actuals |
Policy and credit
The RBI paused after its 2022-23 tightening and held the repo rate at 6.50% at every meeting of the year, keeping its focus on bringing inflation durably to the 4% target. Credit growth was strong. In November 2023 the RBI increased risk weights on unsecured consumer credit and on bank lending to non-bank lenders, which tightened the supply of personal loans. The fiscal deficit narrowed to 5.6% of GDP.
In September 2023 India's government bonds were announced for inclusion in a major global emerging-market bond index, with inclusion beginning in June 2024, which was expected to bring steady foreign demand for government debt.
Markets
The Nifty 50 ended the year at 22,326.90, up 28.6%, with strong participation from domestic investors. The 10-year government bond yield eased to about 7.05%. The rupee depreciated only about 1.4% against the US dollar, supported by large foreign-exchange reserves.
What it meant for businesses
Stable interest rates gave businesses a clear basis for planning. Demand was strong in sectors linked to infrastructure and construction, while some consumer segments were more uneven. Personal borrowers felt the tightening of unsecured credit, which affected households relying on personal loans to manage cash flow.
Long-term perspective
Calm years are the best time to prepare for difficult ones. The practical priorities are:
- Refinance or term out short-term debt while conditions are stable.
- Introduce monthly management reporting (MIS) with a small set of key performance indicators.
- Prepare a lender-ready information pack before it is needed: projections, CMA data and audited statements.
Sources and method
- Ministry of Statistics and Programme Implementation (MoSPI): national accounts press releases and CPI releases.
- Reserve Bank of India: Monetary Policy Statements, Annual Reports and the Database on Indian Economy (DBIE), including the USD/INR reference rate.
- National Stock Exchange of India: Nifty 50 index closing values.
- Ministry of Finance / Controller General of Accounts: Union Budget documents and provisional accounts (fiscal deficit).
Fiscal year runs 1 April to 31 March. GDP growth is shown as first published after the year closed; later official revisions are noted in the table. Market levels are closing values on the last trading day of the fiscal year; bond yields and exchange rates are rounded. Index changes are price only and exclude dividends.