According to Assocham, India is anticipated to be the world’s fastest-growing major economy in 2024 due to strong consumer demand, which has led to an increase in investment in industries such as construction, hotels, and infrastructure, including railroads and aviation.
India kept its title as the world’s fastest-growing major economy, with GDP rising at a faster-than-expected 7.6 percent in the July-September quarter, boosted by government expenditure and manufacturing.
The country’s GDP growth rate of 7.6 percent exceeded most forecasts, including the Reserve Bank of India‘s (RBI) projection of 6.5 percent.
The expansion compared to 6.2 percent in the same quarter last year and 7.8 percent in the previous quarter, according to government figures published on Thursday.
In July-September, India’s GDP growth outpaced China’s 4.9 percent increase, while Western economies are being crushed by high-interest rates and oil costs.
“India’s macro picture looks quite convincing,” Assocham Secretary General Deepak Sood said, “with the overall economy following a trend growth of 7% and critical building blocks combining to give it brighter prospects.”
According to the industry group, India Inc., headed by financials, construction, hotels, aviation, automobiles, and other manufacturing industries such as electronics, is on track to boost performance even more in the next year.
The trend is aided by low crude oil prices, which keep inflation in control while lowering raw material costs significantly.
“Several related industries have gained traction in sectors such as construction.” Steel, cement, mining, energy generation, and consumer durables are among them, according to Assocham.
It expects macroeconomic indicators such as the government balance sheet, which is reflected in solid tax receipts, record foreign currency reserves, rupee stability versus major currencies, and indications of resurgence in goods exports to strengthen further.
India’s economy has evolved from a mixed-planned economy to a mixed middle-income emerging social market economy with a significant public sector in crucial industries. It is the world’s fifth-largest economy in terms of nominal GDP and third-largest in terms of purchasing power parity (PPP); in terms of per capita income, India ranks 139th in terms of GDP (nominal) and 127th in terms of GDP (PPP).
From 1947 until 1991, successive administrations followed the Soviet model and pushed protectionist economic policies that included considerable Sovietization, state intervention, demand-side economics, natural resources, bureaucrat-driven firms, and economic regulation. This is known as dirigism in the form of the Licence Raj.
