India’s economic triumph is defying sceptics

| Updated: 01 March, 2024 4:04 pm IST
TNI Illustration Aditya Singh

India’s recent economic performance has once again demonstrated its resilience and dynamism, with a remarkable GDP growth of 8.4% in the October-December quarter of 2023-24, marking the highest growth rate in six quarters. This stellar achievement has firmly established India as the fastest-growing major economy globally, outpacing economic powerhouses like China, the US, and the UK. Moreover, the upward revision of the GDP growth estimate for the full fiscal year to 7.6% from 7.3% reflects a robust recovery from the challenges posed by the COVID-19 pandemic.

This impressive feat has silenced the critics who had anticipated doom and gloom for the Indian economy in the aftermath of the pandemic, demonetisation, and GST implementation. Contrary to their pessimistic forecasts of India being trapped in a lower-middle-income cycle or regressing into poverty, the hard data and statistics underscore India’s undeniable progress and resilience.

Multiple factors have propelled India’s economic growth trajectory. The government’s prudent fiscal policies, characterized by containing the fiscal deficit at 5.1% of GDP while significantly boosting capital expenditure to Rs 11.11 trillion, have spurred infrastructure development, thereby invigorating the construction and manufacturing sectors. Additionally, initiatives such as production-linked incentive schemes have incentivized both foreign and domestic investments across key sectors like electronics, automobiles, textiles, and pharmaceuticals.

The private sector has also been instrumental in driving India’s economic resurgence. Robust private consumption, supported by the easing of lockdowns and the vaccination drive, has fueled demand, while a revival in private investment reflects improved business sentiment. Corporate earnings have surged, and exports have soared, buoyed by strong global demand and the competitiveness of Indian exporters.

Looking ahead, the outlook for India’s economy is bright and promising. Projections by international institutions like the IMF and the World Bank forecast India to be the fastest-growing economy in the world, with growth rates exceeding 8% in the coming fiscal year. The Reserve Bank of India’s accommodative monetary policy stance further supports this momentum, while government reforms aim to enhance the ease of doing business and foster innovation and entrepreneurship.

India’s economic success is a testament to its sustained efforts to chart a path towards modernization and prosperity. Despite facing numerous challenges along the way, India has emerged stronger and more confident, inspiring the world with its achievements. As India’s economy continues to defy the sceptics, it heralds a promising future filled with opportunities and prosperity for all its citizens.

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