- The Indian leadership led by Prime Minister Narendra Modi and the Reserve Bank of India officials must be commended for initiating several fiscal measures that have proved to be not only prudent but also paving the way for impressive GDP growth as well. The October-December quarter growth of 8.4% not only shows how the Indian economy is surging ahead impressively as compared to other countries but also shows yet again that India is on the right path to achieve its stated objective to be counted among the three largest economies in the world. Remember, not so long ago, every other country including the most advanced and developed ones was struggling to stay afloat from geopolitical challenges.
PC: Harvard Business Review
- The economic meltdown courtesy of the pandemic-induced restrictions/lockdowns and the subsequent conflicts between Ukraine-Russia and the Israel-Hamas continues to pose existential challenges to the global community in more than one way. Especially, the global supply chain disruptions have had a cascading effect around the world leading to challenges of varying degrees. Thankfully, Indian leadership was smart enough to gauge the prevailing situation as accurately as possible under the circumstances to undertake measures that are proving to be quite beneficial. Since the mother of all elections –the Lok Sabha polls–is staring at us, the GDP growth would come in very handy for the ruling dispensation to sell itself.
- Despite strong GDP growth, muted private consumption growth at 3.6 % remained an area of concern in the context of high GDP growth, according to some economists. Hailing the GDP numbers, PM Modi said that his government will continue to strive to keep fast economic growth. He mentioned that robust 8.4% GDP growth in Q3 2023-24 shows the strength of the Indian economy and its potential. Further, he mentioned that efforts will continue to bring fast economic growth which shall help 140 crore Indians lead a better life and create a Viksit Bharat. It must be noted that while the GDP numbers remain strong and growth prospects appear bright, external factors do pose a downside risk.
PC: People Matters
- Of course, the actual performance of the economy has continued to defy expectations and do better than what many had projected, underscoring the fact that a structural transformation of the economy is indeed underway. Indeed, both in terms of physical infrastructure and digital infrastructure as well as inclusion agenda, boosting the purchasing power of Indian households. Domestic consumption is yet to take off on expected lines despite a push from the fiscal leadership core group. The Union Finance Ministry is expected to do more to ensure the growth trajectory remains consistent in the last quarter as well as the ensuing financial year. For the time being, let the Union Government bask in the glory.
