New Delhi

India’s economy is poised for significant growth, with real Gross Domestic Product (GDP) projected to rise by 7.2 per cent in the fiscal year 2024-25, according to Union Finance Minister Nirmala Sitharaman as explained in a report by the Press Trust of India.

Advertisment

Addressing the 50th International Monetary and Financial Committee (IMFC) meeting on October 26, she highlighted the vital role of investment and consumption as fundamental drivers of this optimistic forecast the PTI report detailed further.

Sitharaman emphasised several factors contributing to this growth outlook. Healthy balance sheets among banks and corporations, a return to normalcy in supply chains, and an increase in business optimism create a favourable economic environment. Additionally, the government’s robust capital expenditure plans are expected to further bolster growth, with inflation projected at a manageable 4.5 per cent, the report detailed further.

The Finance Minister also discussed India’s commitment to inclusive growth and social empowerment, aligning with the nation’s long-term vision of becoming a high-income economy by 2047. She remarked, “As India pursues its long-term vision of becoming a high-income economy by 2047, it remains committed to global collaboration.” The government aims for USD one trillion in merchandise exports by 2030, focusing on improved logistics, trade reforms, and deeper integration into global value chains.

Advertisment

Sitharaman’s remarks also touched on India's fiscal discipline. The country has adhered to its budgeted gross fiscal deficit target of 5.6 per cent of GDP for 2023-24, which has been lowered to 4.9 per cent for the upcoming fiscal year. Central government revenue expenditure saw a healthy rise of 9.6 per cent during July-August, bouncing back from a 1.5 per cent contraction in the previous quarter.

Increase in female labour force participation

Another significant achievement highlighted was the increase in female labour force participation, which surged from 23.3 per cent in 2017-18 to 37 per cent in 2022-23. This improvement is crucial for enhancing economic productivity and fostering social development.

Advertisment

Investment trends also signal positive momentum. The central government’s capital expenditure rose by an impressive 25.8 per cent in July-August 2024, following a challenging first quarter. This emphasis on infrastructure development is anticipated to attract more private investment, further stimulating economic activity.

Sitharaman also addressed an important milestone: the complete electrification of villages across India. She stated, “I don't think any village in India is unelectrified today,” reflecting on the substantial progress made since 2014 when many areas lacked basic electrification infrastructure, according to another report by ANI.

Therefore, Nirmala Sitharaman's confidence in India's economic trajectory and its appeal to global investors reinforces the nation’s position as a key player in the global economy. With strategic focus on investment, infrastructure, and inclusive growth, India is well on its way to achieving its ambitious economic goals for the future.

Market participants and global investors will closely follow these developments and make informed investment decisions depending on how the Indian economy evolves and develops going ahead.