Indian Economy

Indian Economy-The trend of Economic Growth of India in 2024

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Four Columns of Economic Growth:

Finance Minister, Nirmala Sitharaman in her recent interview said that the government is currently focusing on four pillars of the Indian economy – infrastructure, investment, innovation, and inclusiveness — to make India a developed nation by 2047.

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Few achievements in the Year 2023:

Taking a deep dive into the scenario of India’s economic landscape in 2023 it can be seen that there have been numerous events like the boom in the IPO, the Indian stock market being at an all-time high with Indian Bank becoming the 4th largest Bank in terms of market capitalization consequently bringing India in the limelight, making it the 5th largest economy in the world.

There has been rapid growth in the digital payment system. On the other hand Reserve Bank Of India, slowly and steadily eliminated the circulation of Rs. 2000.

A dramatic scenario also occurred when the Adani group, one of the biggest conglomerates in India was targeted by US short-seller Hindenburg Research making the stock market volatile for a short period, later though the Adani Group bounced back showing their potential.

Indian Economy

Image credit: The Economic Times

The Fear At The Start of 2023:

The impact of the Russia-Ukraine conflict elevated the oil price resulting in high inflation and thus brought worries of an economic slowdown in the history of the Indian Economy. Experts expected achieving 5% growth in the GDP of the country would be significant.

Indian Economy; India’s Performance on 3 Macroeconomic Factors:

GDP Growth:

With time the scenario changed and despite the global conflicts, India registered a growth of 7.7% in GDP between April to September for a 7.2% rise in 2022-23.

Inflation:

Besides hikes in interest rates, inflation in India showed a downward trend and presently is under RBI’s comfort zone (i.e. 2% to 6%).

Unemployment Data:

Though there is an absence of real-time data regarding the unemployment rate yet according to the data provided by the Periodic Labour Force Survey (PLFS) revealed that there had been a reduction in the unemployment rate along with a rise in women’s participation in the workforce.

Predictions of 2024:

Being the year of Lok Sabha elections, the Finance Minister has indicated the interim budget that will be presented by the former on 1st February, will be a vote-on-account to meet the public spending till the formation of a new government with no spectacular announcements. The full budget of the year is likely to be announced in July, which will bring a change in policies.

The policymakers probably will try to include more private investment in various sectors with an increase in capital investment.

Key Factors to be watched in the upcoming year:
The RBI has recently raised its forecast in terms of GDP growth to 7% which was earlier 6.5%, now that is going to be checked if India can achieve the growth. Global agencies have also rebooted their growth map for India.

Further India has seen expeditious growth in the infrastructure sector along with other service sectors of the country. Now it will be interesting to watch the trend of all the sectors as leaving the COVID shadow behind and relying on domestic growth impulses.

India is also concerned regarding the consequences of the present conflicts going around the world which may hurt the exports of the country and is trying to take steps to maintain stability in the economic corridors.

So far India has maintained well balanced approach amongst the Global powers but if the geopolitical tensions increase then it will be a challenge for the government to maintain the diplomacy which is going to pave the future of the country.

Elections are going to play a crucial role in the policy-making of the country and will influence the trajectory of economic growth.

Conclusion :
India, now the 5th major economy must try to elevate its development by utilizing its potential resources and workforce with a constructive approach to reach the top of the list bypassing the global conflicts and maintaining a balance of relationship between the East and the West and stability not only in the Indo-pacific region and Indian ocean but also in the western part of Arabian sea. Also, the government must look for alternative routes for trade so that it doesn’t get hindered because of the rising global tensions.

Source credit: Study IQ IAS.

Thumbnail credit: Good returns.

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