Bharat’s economy closed the financial year 2023-24 on a strong note, outperforming market predictions despite facing significant global challenges.
According to the monthly economic review from the Department of Economic Affairs under the Ministry of Finance, early signs indicate that this positive trend is continuing into the first quarter of 2024-25.
The report highlighted several key indicators demonstrating the economy’s robust performance. These include higher collections of Goods and Services Tax (GST), an increase in e-way bills, more electronic toll collections, rising vehicle sales, strong purchasing managers’ indices (PMI), and a growing number of digital transactions. These high-frequency indicators collectively point to the strengthening of the Indian economy.
Industrial activity is also gaining momentum. The Index of Industrial Production and PMI for manufacturing are both showing positive trends. In addition, fixed investments are rising, driven by the government’s emphasis on capital spending, which in turn is encouraging private investment. Surveys from the Reserve Bank of India (RBI) indicate increasing consumer confidence and a positive industrial outlook.
Retail inflation dropped to 4.83% in April 2024, marking its lowest point in 11 months. Despite global economic challenges, Bharat’s foreign exchange reserves remain strong, and the Indian rupee has been relatively stable against the US dollar.
From a fiscal perspective, the report noted strong capital spending by the general government during April-February of 2023-24. The fiscal consolidation plans outlined in the Budget for 2024-25 have also helped address concerns about debt sustainability.
ALSO READ: “Bharat Acknowledged as the World’s Fastest-Growing Economy: Nirmala Sitharaman”
Overall, the key pillars of Bharat’s macroeconomic health, including growth, price stability, and fiscal management, are showing positive trends.
The report did acknowledge ongoing challenges, particularly geopolitical tensions and fluctuating global commodity prices, especially petroleum products. However, it expressed confidence that the economic buffers built during the post-Covid period would help Bharat navigate these difficulties smoothly.
Bharat’s GDP grew by 8.4% in the October-December quarter of 2023-24, maintaining its position as the fastest-growing major economy. The International Monetary Fund (IMF) also raised its growth projection for India in 2024 from 6.5% to 6.8%, further cementing India’s growth trajectory.
Bharat’s economy grew by 7.2% in 2022-23 and 8.7% in 2021-22. Currently, Bharat’s GDP is ranked 5th globally, following the US, China, Germany, and Japan. Bharat overtook the UK in 2022 and is estimated to have a GDP of around USD 3.7 trillion.
Amitabh Kant, Bharat’s G20 Sherpa and former CEO of Niti Aayog, projected that Bharat is on track to overtake Japan as the 4th largest economy by 2025. This optimistic outlook is based on various strong macroeconomic parameters that continue to perform well.
Bharat’s economy has shown remarkable resilience and growth, surpassing expectations and setting a positive trajectory for the future. Despite facing global economic challenges, the country’s robust indicators, strong industrial activity, and strategic investments signal continued economic strength and stability.
Comments