India’s economy has demonstrated remarkable resilience and robustness, with economic growth gaining strength quarter after quarter. The third quarter of the fiscal year, registering an impressive growth rate of 8.4%, signifies a strong growth trajectory expected to persist in the forthcoming quarters.
Key drivers of this growth include the manufacturing, construction, and electricity sectors, which have emerged as major contributors in recent quarters. The National Statistical Organisation (NSO) projects the overall real GDP growth for 2023-24 at 7.6%, marking the highest growth rate not only among leading economies but also among many emerging and developing nations.
In line with recent projections by the International Monetary Fund (IMF) in January 2024, the global economy is anticipated to expand by 3.1%, with India playing a significant role in supporting the growth of the South Asian region, projected to reach 5.9% in 2024.
India’s increasing share in global GDP, rising from 2.5% in 2014 to 3.4% in 2023, underscores its growing economic prominence. Moreover, the country’s share in South Asia’s GDP has surged from 77% in 2020 to 80% in 2023, further highlighting its pivotal role in the region’s economic landscape.
The strategic reforms and prudent policy measures implemented by the government, along with efforts from industry, have propelled the manufacturing sector to a growth rate of 11.6% in Q3 2023-24. Significant improvements in the ease of doing business, removal of compliances, and decriminalization of legal provisions have contributed to this growth.
The construction sector, growing at 9.5%, indicates substantial employment generation, absorbing various segments of the workforce. Similarly, high growth rates in electricity, gas, water supply, and other utility services, along with steady growth in the services sector, bode well for India’s continued economic momentum.
With gross fixed capital formation at 32.4% of GDP for Q3 2023-24, India is witnessing steady capacity expansion and strengthening of aggregate demand, paving the way for increased employment opportunities.
India’s GDP has consistently surpassed 7% in all post-pandemic years, with projected growth rates of 9.1% in 2021–22, 7.2% in 2022–23, and 7.6% in 2023–24. These trends are indicative of India’s upward trajectory towards becoming a USD 4 trillion economy by FY 2024-25 and positioning itself as the 2nd largest economy in the Asia-Pacific region and the 3rd largest economy globally by 2030.
Dr. S. P. Sharma, with around 25 years of diverse experience, currently serves as the Chief Economist and Deputy Secretary General at the prestigious industry body, PHD Chamber of Commerce & Industry. Source – timesofoman.com
