India (Commonwealth) _ According to Assocham, India is anticipated to be the world’s fastest-growing major economy in 2024, thanks to robust consumer demand.
Consumer demand will drive an increase in investment in areas such as construction, hotels, and infrastructure such as railroads and aviation. India kept its title as the world’s fastest-growing major economy, with GDP rising at a faster-than-expected 7.6 percent in the July-September quarter, boosted by government expenditure and manufacturing.
Notably, the country’s GDP growth rate of 7.6 percent exceeded most forecasts, including the Reserve Bank of India’s (RBI) projection of 6.5 percent. In July-September, India’s GDP growth outpaced China’s 4.9 percent increase, while Western economies are being crushed by high interest rates and oil prices.
According to Assocham Secretary General Deepak Sood, Indian macro picture appears quite compelling, with the overall economy continuing a trend growth of 7% and critical building blocks combining to give it brighter prospects.”
According to the industry group, India Inc, headed by financials, construction, hotels, aviation, automobiles, and other manufacturing industries such as electronics, is on track to boost performance even more in the coming year.
It stated that the trend is aided by low crude oil prices, which keep inflation in control while having a significant beneficial impact on raw material costs. Construction has various allied sectors that have grown in popularity. Steel, cement, mining, energy generation, and consumer durables are among them.
It expects macroeconomic indicators such as the government balance sheet, which is reflected in solid tax receipts, record foreign currency reserves, rupee stability versus major currencies, and indications of resurgence in goods exports to strengthen further.
The RBI has said that the fall is mostly attributable to a decrease in the product trade imbalance and an increase in service exports. Services exports increased by 4.2% year on year, owing to increased exports of software, business, and travel services.
According to RBI statistics, services exports increased by 4.2% year on year, owing to increased exports of software, business, and travel services. Net service receipts grew both sequentially and year over year. The main income account’s net outflow, which mostly reflects payments of investment income, grew to USD12.2 billion from USD 11.8 billion a year before.
Forecasters consider this as a modest deceleration from an unusually robust quarter for Asia’s third-largest economy, which is predicted to develop more than 6.0% in the next years, the quickest among major economies.
Even while an irregular monsoon caused a surge in inflation last quarter, consumer demand – which accounts for over 60% of GDP growth in a country of over 1.4 billion people – remained solid, mostly driven by According to a poll, India’s GDP growth is expected to average 6.4% this fiscal year ending March 31 and 6.3% the next year, spurred in part by stronger government capital investment.
That predicted growth rate would comfortably surpass most other economies, many of which have slowed significantly as a result of a historic string of central bank interest rate hikes to manage inflation. In comparison, the Reserve Bank of India’s efforts have been paltry.
However, consumer demand is not uniform across the world’s most populated country, which encompasses some of the world’s largest cities. Outside of cities, two-thirds of Indians dwell.
While rural consumption fell during the July-September quarter as a result of increasing pricing for common products, metropolitan demand remained solid. However, the decline in rural demand is projected to be temporary.
A substantial 69% majority of economists (20 of 29) who responded to a second question predicted that the difference between rural and urban consumption will close in the next two to three years. Six predicted it would remain the same, while three said it would become wider.
