India’s economy has become more robust and resilient; the economic growth is strengthening quarter after quarter; the Q3 growth at 8.4% indicates a strong growth trajectory to continue in the coming quarters too.
Manufacturing, construction, and electricity sectors have become the major growth drivers in recent quarters. The overall real GDP growth projected by NSO (National Statistical Organisation, India) at 7.6% in 2023-24 is highest not only among the leading economies but also many emerging and developing countries.
According to the recent IMF update (January 2024) World Economy will grow at 3.1%, Advanced Economies at 1.5% and Emerging Markets and Developing Economies at 4.1% in 2024. India is significantly supporting the growth of South Asia, which is projected to grow at 5.9% in 2024.
South Asia’s share in global GDP has increased significantly from 3.2% in 2014 to 4.5% in 2023. India’s share in global GDP increased from 2.5% in 2014 to 3.4% in 2023. India’s share in the South Asia’s GDP increased from 77% in 2020 to 80% in 2023 followed by Bangladesh’s share in South Asia GDP increasing from 5.7% in 2014 to around 10% in 2023.
In the recent years, India has experienced a progressive growth trajectory characterized by an expanding Gross Domestic Product (GDP) year after year. All the economic fundamentals including Agriculture, Manufacturing, Construction, Electricity, Gas, Water Supply, Mining and quarrying, Public Administration, Defense, and other Services are paying pivotal roles in strengthening India’s overall growth and development.
This emphasizes the diverse and multifaceted nature of India’s economic landscape, highlighting the strategic importance of various sectors in driving the nation’s overall economic growth.
The manufacturing sector has grown at 11.6% in Q3 2023-24 on the back of strategic reforms and prudent policy measures by the government and efforts of industry.
Significant ease of doing business along with removal of tedious compliances and decriminalisation of many minor offences has bolstered the manufacturing sector. The government has significantly improved the Ease of Doing Business.
Recently, more than 40,000 compliances have been removed and more than 3,400 legal provisions have been decriminalized to enhance Ease of Doing Business. With the advent of new technologies and robust eco-system, the country has become second largest mobile producer in the World.
The consistent growth in the construction sector at 9.5% is indicating the creation of new employment as the construction sector absorbs skilled, semi-skilled, and unskilled chunks of the workforce in in the real estate and infrastructure projects.
High growth in the electricity, gas, water supply & other utility services at 9% is inspiring as this indicates a broad-based growth and development of the Indian economy. The services sector growing at a steady pace of more than 7% is displaying that India’s growth momentum will continue as services contribute significantly 54% in the GDP.
The gross fixed capital formation at 32.4% of GDP for Q3 2023-24, higher than 31.8% in 2022-23 for Q3, is indicating steady capacity expansion in the country and strengthening of the aggregate demand and more employment opportunities in the coming times.
India’s economic growth trajectory has exhibited encouraging trends, marked by a robust growth in the recent years.
In the aftermath of the global pandemic, and amidst the geopolitical headwinds, India’s GDP has consistently surpassed the 7% in all the post pandemic years, GDP growth rate of 9.1% in 2021–22, 7.2% in 2022–23 and 7.6% in 2023–24 (projected by NSO).
India will become USD 4 trillion economy by FY 2024-25, USD 5 trillion by FY 2026–27, a USD 7 trillion economy by 2030 and USD 30 trillion by 2047. We are all set to position ourselves as the 2nd largest in the Asia-Pacific region and the 3rd largest economy in the World by 2030 and “Viksit Bharat” by 2047.
Dr S P Sharma has around 25 years of diverse experience in the various areas of the economy,
trade and industry. Currently, he is working with the prestigious industry body, PHD Chamber of Commerce & Industry as Chief Economist and Deputy Secretary General. (Times of Oman)