India, June 19, 2024
India has attained a very high growth rate of 7 percent in its current fiscal session of economy. Eight percent in the first quarter of the financial year 2023-24, though the RBI had estimated the level of inflation at 7 percent for the period.
The incremental GDP for economic growth has been increased to 8 for the overall effect by 2023-24. 2%, while state aid increased only by 7% in the previous year. The high economic growth was due to the performance of the manufacturing and construction industries, which experienced rapid growth throughout the year.
The manufacturing sector increased by 2. 9 percent during 2023-24, whereas the construction sector has grown at 9. 9%. Other contributing sectors, including trade, hotels, real estate, business services, and defense, are increasing by 7%.
The economic reports of major economies show that the GDP growth for the fourth quarter of the fiscal year 2023-24 is high, whereas China has a lead with a growth of 5. 3% until the beginning of the year 2024.
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Economic analysts expect Gross Domestic Product to be higher the following financial year in the region of 6%. The government intends to borrow $48 billion, equivalent to 8% of its revenues from the international capital markets, and reduce inflation to 4%.
The above-mentioned robust growth is a boon to Prime Minister Narendra Modi’s economic story in the last phase of Lok Sabha polls. The governments of both countries have attributed the development to a barbarous working population and effective policies.
The RBI has also cheered the exponential growth, which has emerged as a positive shock and the building of India’s economy.Thus, higher GDP growth shows a solid and viable way for the Indian economy to overcome the consequences of the COVID-19 pandemic.
