India’s 8.4% growth rate in the economy exceeds forecasts

With an 8.4% growth in the final three months of 2023, India’s major economy has managed to hold its position as the fastest expanding in the globe. The information is released as the nation prepares for this year’s general election. “The strength of Indian economy and its potential” is what Prime Minister Narendra Modi wrote on the social media site X, which was once known as Twitter. In the coming years, India is expected to surpass Germany and Japan to become the third-largest economy in the world. The nation’s manufacturers put up a great show, with the industry growing by 11.6% during the time, contributing to the better-than-expected increase.

 

The high cost of basic goods like onions last year had an impact on people’s ability to spend. As a result, the government implemented many policies to help slow the rise in food prices. To assist India compete on the global stage, Prime Minister Modi has increased government expenditure on infrastructure and provided incentives to increase the production of phones, electronics, drones, and semiconductors. The development of three semiconductor plants by companies, including the Indian conglomerate Tata, valued at 1.26 trillion rupees ($15.2 billion; £12 billion), received approval from the government on Thursday. However, the monsoon rains caused the agricultural sector, which makes about 15% of the $3.7 trillion (£2.93 trillion) economy, to continue to struggle.

 

To demand minimum agricultural prices, some farmers have been staging protests. India’s economy is predicted by the International Monetary Fund (IMF) to grow by 6.5% in 2024, compared to China’s 4.6%. Beijing is coming under increasing pressure to announce stimulus packages to help the world’s second-biggest economy, which is struggling with a host of issues like a housing market meltdown, high youth unemployment, and deflation, or declining prices.

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