India’s economy has experienced significant growth over the last six quarters, likely boosting current Prime Minister Narendra Modi’s chances of reelection. This surge, announced on February 29, 2024, was attributed to “vigorous activities” in the manufacturing, building, and investment sectors.
The manufacturing industry emerged as the top contributor to the economic upswing, registering around a 4.7% increase. It’s credited mainly to the government’s ‘Make in India’ initiative, which encourages domestic manufacturing.
Government funding in the building sector ignited a boom in construction projects, contributing to a 3.9% increase in this sector. This rejuvenation provided millions of job opportunities, significantly lowering the unemployment rate in the country.
The investment sector also thrived, recording an increase of about 2.6%. This surge is attributed to the government’s business-friendly policies and comprehensive strategy towards easing business operations in India.
India overcoming its economic odds
Despite these growth figures, India still faces challenges, including socio-economic disparities, infrastructural limitations, and the ongoing skill gap in the labor market. If uncontrolled, these issues may potentially impede the current progress.
Indian laborers’ hard work, particularly on projects like the Ahmedabad-Mumbai High-Speed Rail corridor, played a significant role in this economic improvement. Their dedication adds to the nation’s advancement and inspires younger generations.
In the third quarter of FY24, there was a GDP increase of 8.4% from the previous quarter’s 7.6% growth. This surge led to a GDP forecast upgrade for FY24, from 7.3% to 7.6%.
Despite this promising economic progress, the agricultural sector continues to struggle, showing a decrease of 0.8%. There are still persistent issues, including the lack of access to modern technology, effective irrigation systems, and fair-trade policies. Urgent action is required to address these structural problems.
PM Modi’s controversial farm laws were revoked amid nationwide protests. This move prompted critical conversations about the future of the Indian farming sector, encouraging a more inclusive legislative process. This decrease in agricultural productivity is a pressing concern and requires effective solutions.
This in-depth data analysis and report were completed with the assistance of Nikunj Ohri, Sarita Chaganti Singh, and Riddhima Talwani, and edited by a team including Chizu Nomiyama, Kirsten Donovan, and Toby Chopra. Their skills and expertise ensured that complex information was broken down into understandable segments, resulting in a comprehensive economic overview of India.
