India Maintains Title of World’s Fastest Growing Major Economy with 8.4% Expansion in Q4 2023.
India has once again proven its economic prowess by achieving a remarkable growth rate of 8.4% in the final quarter of 2023, reaffirming its position as the world’s fastest growing major economy. The announcement comes amidst preparations for the upcoming general election in the country.
Prime Minister Narendra Modi took to social media platform X (formerly Twitter) to laud the achievement, highlighting the strength and potential of the Indian economy.
The impressive growth was predominantly driven by a robust performance in the manufacturing sector, which expanded by 11.6% during the period. Additionally, private consumption, a significant contributor to India’s gross domestic product (GDP), saw a notable increase of 3.5%.
Last year, high prices of staple foods like onions had impacted people’s spending power, prompting the government to implement measures aimed at curbing food price inflation.
Prime Minister Modi’s focus on infrastructure development and incentives to bolster manufacturing of various products, including phones, electronics, drones, and semiconductors, has aimed to enhance India’s competitiveness in the global market. In line with this vision, the government recently approved the construction of three semiconductor plants worth 1.26 trillion rupees.
However, challenges persist, particularly in the agricultural sector, which accounts for approximately 15% of India’s $3.7 trillion economy. Weak monsoon rains have continued to hamper agricultural productivity, leading to protests from some farmers demanding minimum crop prices.
Looking ahead, the International Monetary Fund (IMF) projects India’s economy to expand by 6.5% in 2024, surpassing China’s expected growth rate of 4.6%. In contrast, China faces various challenges, including a property market crisis, high youth unemployment, and deflation, prompting calls for stimulus measures to support economic stability.
Comments are closed.