India's Economy Surpasses Expectations with 8.4% Growth

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India Retains Position as World's Fastest Growing Major Economy with 8.4% Growth


India has maintained its status as the world's fastest growing major economy, registering a robust 8.4% expansion in the final quarter of 2023 compared to the same period a year earlier.




The release of this data coincides with the upcoming general election in the country.

Prime Minister Narendra Modi took to the social media platform X, formerly known as Twitter, to highlight the significance of the growth figures, emphasizing "the strength of the Indian economy and its potential."

Projections suggest that India is poised to surpass Japan and Germany to become the world's third-largest economy in the coming years.

The better-than-expected growth was primarily driven by a notable performance from the manufacturing sector, which expanded by 11.6% during the period.

Additionally, private consumption, constituting nearly two-thirds of India's gross domestic product (GDP), saw a rise of 3.5%.

However, consumer spending was impacted in the previous year due to elevated prices of essential commodities such as onions. In response, the government implemented several measures to address food price inflation.

In recent times, Prime Minister Modi has escalated government expenditure on infrastructure and provided incentives to bolster the manufacturing of various products, including phones, electronics, drones, and semiconductors, with the aim of enhancing India's competitiveness in the global market.

On Thursday, the government approved the construction of three semiconductor plants valued at 1.26 trillion rupees ($15.2 billion; £12 billion), involving firms like the Indian conglomerate Tata.

Nevertheless, the agricultural sector, which contributes approximately 15% to the $3.7 trillion (£2.93 trillion) economy, continued to face challenges due to deficient monsoon rains. Some farmers staged protests demanding minimum crop prices.

The International Monetary Fund (IMF) anticipates India's economy to expand by 6.5% in 2024, compared to China's projected growth of 4.6%.

Amidst various challenges including a property market crisis, high youth unemployment, and deflationary pressures, Beijing is under increasing pressure to introduce stimulus measures to support China's economy.

[Disclaimer: The information provided in this article is based on publicly available sources and should not be considered as financial or investment advice. Readers are encouraged to conduct their own research or consult with a financial advisor before making any investment decisions.]





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