India’s Economy Surpasses Expectations Registering An Impressive Growth Of 8.4%

India’s Economy Surpasses Expectations, Registering An Impressive Growth Of 8.4%. India maintains its status as the globe’s fastest-growing major economy, with a remarkable expansion of 8.4% in the final quarter of 2023.

The data emerges as the nation gears up for a forthcoming general election later this year.

Prime Minister Narendra Modi: India’s Economy Surpasses Expectations Registering An Impressive Growth Of 8.4%

Prime Minister Narendra Modi took to the social media platform X (formerly Twitter), emphasizing that it underscores “the strength of the Indian economy and its potential.”

Projections indicate that India is poised to surpass Japan and Germany, securing its position as the world’s third-largest economy within the next few years.

The period witnessed a growth surpassing expectations, primarily driven by a robust performance from the country’s manufacturing sector, which expanded by an impressive 11.6%.

Gross Domestic Product (GDP) Increase

Constituting nearly two-thirds of the country’s Gross Domestic Product (GDP), private consumption also experienced a notable increase of 3.5%.

Last year, the populace faced a decline in spending power due to elevated prices of essential commodities like onions. In response, the government implemented various measures to counter food price inflation.

In recent years, Prime Minister Modi has directed increased government spending towards infrastructure and provided incentives to bolster the production of phones, electronics, drones, and semiconductors, aiming to enhance India’s competitiveness in the global market.

Notably, the government recently granted approval for the construction of three semiconductor plants valued at 1.26 trillion rupees ($15.2 billion; £12 billion), involving companies such as the Indian conglomerate Tata.

However, the agricultural sector, contributing approximately 15% to the $3.7 trillion (£2.93 trillion) economy, continues to face challenges due to insufficient monsoon rains. Some farmers have been protesting, advocating for minimum crop prices.

International Monetary Fund (IMF)

The International Monetary Fund (IMF) anticipates a 6.5% expansion for India’s economy in 2024, surpassing China’s projected growth of 4.6%. Meanwhile, Beijing grapples with mounting pressure to unveil stimulus measures addressing challenges like a property market crisis, high youth unemployment, and deflationary pressures in the world’s second-largest economy.