The economic growth number of India is here, and nobody was expecting the results. India has retained its title of the world’s fastest-growing economy, with a growth rate of 8.4% in the last three months. Indian Prime Minister Narendra Modi also posted a tweet, where he said that this shows the strength and potential of the Indian economy. With such an economic growth rate, India is expected to surpass Germany and Japan to become the 3rd biggest economy in the world.
This growth was led by the strong performance of the country’s manufacturing sector. The manufacturing sector of India expanded by almost 12 per cent in the last three months. Also, private consumption in the country, which accounts for almost two-thirds of the country’s GDP, rose by 3.5 per cent in the period.
It was also possible due to the Indian government’s expenditure on infrastructure and the manufacturing sector. The government also offered incentives to boost the manufacturing of electronic devices like mobile, TVs, laptops and semiconductors. On Thursday, 29 Feb 2024, the government approved the establishment of 3 semiconductor manufacturing units; two in Gujrat and one in Assam. Recently, Foxconn also signed a deal to set up semiconductor plant in India.
According to the IMF (International Monetary Fund), India is expected to grow at a rate of 6.5%, while China is expected to grow at a rate of 4.5%. This shows that India’s glory days are still ahead, and the country is all set to emerge as one of the top 3 economies in the world.
