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Wednesday, July 24, 2024

Assocham Predicts India to Sustain Fastest-Growing Major Economy Status in 2024

India is anticipated to maintain its position as the world’s fastest-growing major economy in 2024, driven by robust consumer demand leading to increased investments across various sectors, including construction, hospitality, and infrastructure, encompassing railways and aviation, according to a statement from Assocham on Thursday.

India retained its title as the fastest-growing major economy as its GDP expanded by a higher-than-expected rate of 7.6 percent in the July-September quarter, attributed to government spending and manufacturing. This growth surpassed estimates, including the 6.5 percent projection by the Reserve Bank of India (RBI). The 7.6 percent growth compares favorably to 6.2 percent in the same quarter the previous year and the 7.8 percent expansion in the preceding quarter.

India’s GDP growth outperformed China’s 4.9 percent rise in the same period, while Western economies grappled with challenges posed by high-interest rates and energy prices.

Assocham Secretary General Deepak Sood expressed confidence in India’s macroeconomic outlook, citing a trend growth of seven percent with multiple contributing factors that bode well for the country’s prospects.

The industry body highlighted that various sectors within India Inc., including financials, construction, hotels, aviation, automobile, and manufacturing areas like electronics, are poised for improved performance in the upcoming year. Low crude oil prices, contributing to controlled inflation and positively impacting raw material costs, are playing a significant role in supporting this trajectory.

“Sectors like construction, with associated industries such as steel, cement, mining, electricity generation, and consumer durables, have gained momentum,” noted Assocham.

The macroeconomic indicators, encompassing a robust government balance sheet, impressive tax collections, record foreign exchange reserves, stability in the rupee against major currencies, and signs of a revival in merchandise exports, are expected to further enhance India’s economic outlook, as estimated by Assocham.

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