Our efforts will continue to bring fast economic growth which shall help 140 crore Indians lead a better life and create a Viksit Bharat: PM Modi
Our Bureau
New Delhi/Mumbai
India’s GDP grew at a huge 8.4 per cent during the October-December quarter of the current financial year and the country continued to remain the fastest-growing major economy. The Indian economy grew 7.8 per cent and 7.6 per cent during the preceding two quarters – April-June and July-September, data released by the Ministry of Statistics and Programme Implementation on Thursday showed.
India continues to be an outlier and remains the fastest-growing major economy and global agencies will reappraise their estimate of potential GDP growth in India, which is close to 7 per cent, if not higher, Chief Economic Advisor V Anantha Nageswaran has said.
In a virtual media briefing after third quarter GDP growth figures were released, Nageswaran said that India stands out as the fastest-growing economy, supported by stable external sectors, current account deficit nearing just 1 per cent of GDP, forex reserves covering 11 months of imports and substantial FPI flows contribute to economic resilience.
Nageswaran said that in the services sector, while hospitality growth has slightly dipped, it’s seen as stabilizing after a strong recovery in FY22 and FY23. Tourist arrivals surpass pre-pandemic averages, signaling a positive trend in both business and leisure travel, he said. The CEA said that demand conditions are favorable, reflected in healthy passenger vehicle sales, domestic air passenger traffic, and a buoyant construction sector. With the external sector remaining stable, the country seems well-positioned for continued growth.
“Looking ahead to FY25, prospects are optimistic. Anticipated factors include a robust Rabi harvest, sustained manufacturing profitability and service sector resilience. Household consumption is expected to improve, supported by positive private capex cycles, improved business sentiments, and the government’s focus on capital expenditure,” he added.
The CEA highlighted that the global factors such as an improved outlook for international trade and integration into global supply chains, further bolster India’s economic potential. Public digital platforms and strategic initiatives like PM GatiShakti and production-linked incentive schemes aim to stimulate manufacturing.
The CEA also referred to challenges with uncertainties in merchandise trade and geopolitical tensions potentially impacting growth.
“Despite these challenges, India’s economic outlook for FY25 appears promising, with a combination of internal strengths and external factors poised to drive continued growth,” he said.
The Indian economy grew 7.8 per cent and 7.6 per cent during the preceding two quarters – April-June and July-September, data released by the Ministry of Statistics and Programme Implementation on Thursday showed.
Prime Minister Narendra Modi has said the robust 8.4 per cent GDP growth in the third quarter of 2023-24 shows the strength of the Indian economy and also its potential and the government will continue its efforts for fast economic growth to create ‘Viksit Bharat’. PM Modi said in a post on X that fast economic growth will also help the citizens lead a better life.
“Robust 8.4% GDP growth in Q3 2023-24 shows the strength of Indian economy and its potential. Our efforts will continue to bring fast economic growth which shall help 140 crore Indians lead a better life and create a Viksit Bharat!” he said.
Underlining that Indian economy is on a high growth trajectory, Confederation of Indian Industry in a statement on Thursday exuded confidence that Indian economy will continue to grow at 7 per cent plus growth rate over the medium term.
In a statement issued today, Chandrajit Banerjee, Director General, CII, said, “industry is enthused to note the strong set of GDP growth numbers for the third quarter (YoY), which surpassed expectations, recording an actual rate of 8.4 percent exceeding the previous quarter’s 7.6 per cent”.
“What is more comforting to note is the fact that the robust expansion came despite the recurring spate of geopolitical flashpoints and was premised on a healthy double-digit expansion in manufacturing and investment,” he said.
The PLI scheme and host of other benefits announced for the manufacturing sector have buttressed the strong growth posted by the manufacturing sector, as per the statement
“Indian economy is on a high growth trajectory supported by structural reforms and improvements in both ease & cost of doing business. This makes us confident that the Indian economy will continue to grow at 7 per cent plus growth rate over the medium term”, the statement added.
