India to achieve notable growth despite essential issues
Date
5/12/2024 9:36:28 AM
(MENAFN) India has emerged as one of the world's fastest-growing economies, undergoing a remarkable transformation into a key driver of global growth. Despite facing challenges such as the Global Financial Crisis and the Covid-19 pandemic, India maintained an impressive average growth rate of 6.5 percent from 2000 to 2023, firmly establishing itself as the sixth-largest Economy globally and contributing significantly to the global economic landscape, accounting for 8 percent of the global economy. Notably, India's growth trajectory translates to a substantial 0.52 percentage points contribution to the projected 3.2 percent global growth in 2024, as highlighted in an economic commentary by QNB.
Several factors underpin India's robust economic performance. Firstly, heightened investment levels, particularly in infrastructure, have fueled aggregate demand and expanded production capacity. Notably, both the central and state governments have prioritized capital expenditures, with the central government's budget for infrastructure witnessing a significant increase to USD135 billion for the fiscal year 2025, more than tripling from previous years.
Secondly, India benefits from a large, youthful, and expanding population, offering a vast reservoir of labor to fuel economic expansion. Recent demographic milestones, including surpassing China to become the world's most populous nation, underscore India's demographic dividend and its potential to sustain economic growth.
Thirdly, an ambitious reform agenda is poised to further bolster productivity growth, providing a solid foundation for sustained economic advancement. The implementation of extensive reforms across various sectors is expected to unlock new opportunities and enhance efficiency, driving overall productivity gains.
In essence, India's economic trajectory reflects a combination of strategic investments, demographic advantages, and proactive policy reforms, positioning the country as a key player in the global economy and underscoring its potential to continue driving global growth in the years to come.
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