• Saturday, April 20, 2024

Business

Modi says ‘shows the strength’ as India growth exceeds expectations

The South Asian economy saw a robust 8.4 per cent growth in the final quarter of 2023 compared to the preceding year.

Representational Image (iStock)

By: Shubham Ghosh

INDIA has maintained its position as the globe’s swiftest expanding major economy, registering a robust 8.4 per cent growth in the final quarter of 2023 compared to the preceding year.

The news comes just months before the South Asian nation holds its general election.

An elated prime minister Narendra Modi posted on X platform, saying it shows “the strength of Indian economy and its potential”.

He said, “Robust 8.4% GDP growth in Q3 2023-24 shows the strength of Indian economy and its potential. Our efforts will continue to bring fast economic growth which shall help 140 crore Indians lead a better life and create a Viksit Bharat!”

Read: Expect India’s real GDP growth to touch 7%, says its central bank chief at WEF

Read: Modi’s BJP slams former central bank chief Raghuram Rajan after India clocks 7.2% GDP growth: ‘Filth seeking flies’

Modi, who is confident of returning to power for the third successive time this year, has guaranteed that India will become the world’s third largest economy during his third term, overtaking the likes of Japan and Germany to trail only the US and China.

The better-than-expected growth was engineered by a strong performance by India’s manufacturers. The sector expanded by 11.6 per cent in the said period.

Household consumption, constituting nearly two-thirds of the nation’s gross domestic product (GDP), saw a corresponding uptick of 3.5 per cent.

In the preceding year, the populace experienced a strain on their purchasing ability owing to elevated prices of essential commodities such as onions. Consequently, the government implemented various measures to mitigate food price inflation.

Modi raised government spending on infrastructure over the last few years and offered incentives to promote manufacturing of phones, electronics, drones and semiconductors to enable the South Asian economy to compete globally.

On Thursday (Feb 29), the government gave nod to construction of three semiconductor plants worth Rs 1.26 trillion (£12 billion) by firms, including India’s giant conglomerate Tata.

The agriculture sector, a major part of the economy, continued to struggle because of weak monsoon. The sector accounts for 15 per cent of the $3.7 trillion (£2.93 trillion) national economy.

The International Monetary Fund predicts the Indian economy to grow by 6.5 per cent in 2024, compared to 4.6 per cent for its northern neighbour China.

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