Indian economy remains resilient, buoyant despite global challenges: Finance Minister

Finance Minister Nirmala Sitharaman highlighted the impressive performance of the manufacturing sector and the overall resilience of the Indian economy.

In a recent post on X (formerly Twitter), she emphasized the significant growth in manufacturing and the buoyancy of the economy amid global challenges.

In her post, Sitharaman highlighted, "It is worthwhile to note that the Manufacturing sector witnessed a significant growth of 9.9 per cent in 2023-24, highlighting the success of the Modi government's efforts for the sector. Many high-frequency indicators indicate that the Indian economy continues to remain resilient and buoyant despite global challenges. India's growth momentum will continue in the third term of PM Shri @narendramodi-led government."

Today's GDP data showcases robust economic growth with a growth rate of 8.2% for FY 2023-24 and 7.8% for Q4 of FY 2023-24. This remarkable GDP growth rate is the highest among the major economies of the world.

It is worthwhile to note that the Manufacturing sector witnessed a…

— Nirmala Sitharaman (Modi Ka Parivar) (@nsitharaman) May 31, 2024

The 8.2 per cent growth rate marks a substantial improvement from the 7.0 per cent recorded in the previous fiscal year, driven by significant advancements across various sectors.

The manufacturing sector, in particular, stood out with a 9.9 per cent growth, reflecting the positive impact of government policies such as 'Make in India'.

The data reflects a robust Q4 performance with real GDP rising to Rs 47.24 lakh crore, showing a strong growth rate of 7.8 per cent.

Concurrently, real GVA reached Rs 42.23 lakh crore, growing at 6.3 per cent. These figures underscore the steady momentum and resilience of the Indian economy across various sectors.

Dharmakirti Joshi, Chief Economist, CRISIL Ltd emphasised that elevated interest rates are likely to dampen consumer spending and investment in non-agricultural sectors.

Despite the overall moderation, Joshi predicts an improved performance in the agricultural sector.

Joshi said, "We expect growth to moderate to 6.8 per cent in the current fiscal, with high interest rates and lower fiscal impulse (as the deficit is trimmed to 5.1 per cent in fiscal 2025) tempering demand in non-agricultural sectors."

Joshi added, "Agriculture, however, is expected to improve its performance in the current fiscal on the back of normal monsoons and a favorable base effect. Agriculture grew at 1.4 per cent in fiscal 2024, much below its pre-pandemic decadal average of 4.4 per cent."

Anshuman Magazine, Chairman and CEO - India, South-East Asia, Middle East & Africa, CBRE, emphasized the robust nature of the economic growth, stating, "This impressive growth, fuelled by increased infrastructure spending and strong consumer optimism, expanding services PMI, and higher tax collections, bolstered India's economic momentum despite global headwinds."

Several government initiatives have been instrumental in driving this growth. The focus on infrastructure development, fiscal discipline, and strategic economic reforms have laid a strong foundation for continued economic expansion.