Indian Economy Booms: Despite global challenges, the country continues to grow at the fastest pace in the world due to the strength of domestic demand. India’s GDP growth rate was recorded at 6.2 percent in the third quarter (October-December) of the current financial year 2024-25, which is higher than all developed and developing countries like China, America, Indonesia, Brazil. This shows the strength of the Indian economy.
The positive sign for the Indian economy is that due to the grand event of Maha Kumbh, increase in capital expenditure of public companies and increase in non-petroleum and non-gems and jewellery exports, the growth rate is estimated to be 7.6 percent in the fourth quarter (January-March) of the current financial year. This will be a big achievement.
Target of 4 trillion dollars
With the good performance of GDP in the fourth quarter, GDP growth is expected to be 6.5 percent in the current financial year. By achieving this growth rate, the size of the Indian economy will reach close to four trillion dollars at current prices by the end of March this year. Chief Economic Advisor V. Ananthan Nageshwaran said that the grand event of Maha Kumbh in Prayagraj has strengthened many industries like transport, food, hotels. This event has proved to be a big booster for the Indian economy.
Mahakumbh will have an impact on GDP
50-60 crore people participated in Maha Kumbh, which increased spending and its impressive impact will be seen in the fourth quarter GDP. He said that public expenditure had decreased due to elections during the first and second quarters, but now it has increased significantly and 75 percent of the capital expenditure estimate has been spent till January this year. Apart from this, non-petroleum and non-gems and jewellery sector exports have increased by 10 percent.
Increase in rural and urban consumption
Both rural and urban consumption is increasing. Therefore, the growth of 7.6 percent in the fourth quarter looks real. Nageshwaran said that at the end of the current financial year, the size of the Indian economy will be $3.92 trillion and we will touch the level of about four trillion dollars. This will be an important milestone.
Help from agriculture and service sectors
Manufacturing performance again remained weak in the third quarter of the current financial year. Growth rate of more than six percent was achieved due to agriculture and service sectors. However, a huge increase in imports of capital goods and increase in private investment is expected to increase manufacturing in the coming months.
Increased trend of private investors
In the first quarter of the current financial year (April-June), private investors had announced new projects worth less than Rs 2 lakh crore. In the third quarter, private investors have announced new projects worth Rs 7 lakh crore. Despite all this, the increase in tariffs and restrictions in global trade, the continued weakness of the rupee against the dollar and the continuous decline in the stock market can prove to be a risk for the Indian economy.
