India Economy Beats Expectations: 8.4% GDP Growth in Q4 2023
India's economy has exceeded expectations, growing by 8.4% in the last quarter of 2023. This makes India the fastest-growing major economy globally. The news comes at an important time, with a general election on the horizon.
Prime Minister Narendra Modi shared his thoughts on the social media platform X (formerly Twitter), highlighting this growth as a testament to India's economic strength and potential.
Also Read: Japan Falls into Recession: Germany Now 3rd Largest Economy
Embedded Tweet Here
The strong growth was mainly driven by a remarkable performance from the manufacturing sector, which expanded by 11.6% during this period. Additionally, private consumption, which makes up a significant portion of India's GDP, increased by 3.5%.
Kamal, 2:01 PMLast year, high prices of essential foods like onions impacted people's purchasing power. In response, the government took steps to control food price inflation.
In recent years, Prime Minister Modi has increased government spending on infrastructure and provided incentives to boost manufacturing in various sectors such as phones, electronics, drones, and semiconductors. These efforts aim to enhance India's competitiveness in the global market.
Kamal, 2:01 PMJust recently, the government approved the construction of three semiconductor plants valued at 1.26 trillion rupees ($15.2 billion; £12 billion) by companies like Tata, a major Indian conglomerate.
However, the agricultural sector, which makes up about 15% of India's $3.7 trillion economy, faced challenges due to weak monsoon rains. This has led to protests from farmers demanding minimum crop prices.
The International Monetary Fund (IMF) predicts India's economy will grow by 6.5% in 2024, outpacing China's expected growth of 4.6%. China is facing its own set of challenges, including a property market crisis, high youth unemployment, and deflation.
In contrast, Japan's economy is expected to grow at a slower rate.
Click for more updates and the latest business news, along with Web stories updates. Also, get the latest news and top headlines from India and around the world at Speed News
