India posted world-beating growth of 8.2 per cent in the year to March on Friday, in a last-minute boost to Prime Minister Narendra Modi's economic credentials the day before national elections conclude.

The world's most populous country also remains its fastest growing major economy thanks to robust demand and huge government infrastructure spending.

That has kept sentiment positive about India's overall economic trajectory despite chronic unemployment and immense welfare outlays to hundreds of millions of poverty-stricken citizens.

Strong growth in the manufacturing and mining sectors contributed to India's annual growth numbers, which beat both government and analyst projections.

Also read:&nbsp;<a data-ctorig="https://www.wionews.com/business-economy/indias-economic-ascent-projected-68-pc-growth-in-fy25-eyes-upper-middle-income-status-by-2031-697492" data-cturl="https://www.google.com/url?client=internal-element-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/indias-economic-ascent-projected-68-pc-growth-in-fy25-eyes-upper-middle-income-status-by-2031-697492&amp;sa=U&amp;ved=2ahUKEwiNjbrO-reGAxVZTGcHHdrZAZUQFnoECAAQAg&amp;usg=AOvVaw0y7SWPdyN_-5RI0CqnBaVq&amp;arm=e&amp;fexp=72519171,72519168" dir="ltr" href="https://www.wionews.com/business-economy/indias-economic-ascent-projected-68-pc-growth-in-fy25-eyes-upper-middle-income-status-by-2031-697492" target="_blank">India's&nbsp;Economic&nbsp;Ascent: Projected to grow 6.8 pc in FY25</a>

India's economy also recorded 7.8 per cent growth for the March quarter, higher than the government's projection of 5.9 per cent.

The figures from India's statistics ministry were published a day before the country concludes voting in general elections staged over six weeks.

Analysts widely expect Modi's Hindu nationalist government to win a third term once results are counted on Tuesday.

The 73-year-old premier has pledged to make India the world's third-biggest economy after the United States and China by the end of the decade.

Watch:&nbsp;US Economy grows slower than previously estimated in Q1 - WION

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Modi's ruling Bharatiya Janata Party (BJP) has vowed if re-elected to maintain its focus on infrastructure spending and keep in place popular subsidies including free rations for needy families and cash handouts for farmers.

Its re-election campaign has been aided by a campaign war chest that dwarfs its rivals thanks to donations from some of India's biggest conglomerates.

The BJP received $730 million in five years from leading companies and wealthy businesspeople through electoral bonds, a contentious political donation tool since ruled illegal by India's top court, making it by far the biggest single beneficiary.

But Modi's government has struggled to create enough jobs for the tens of millions of young Indians entering the workforce each year.

The International Labour Organisation has estimated that 29 percent of India's young university graduates were unemployed in 2022.

India emerged from the Covid-19 pandemic to be buffeted by a new set of global headwinds, including price spikes in global oil and food markets as a result of the war in Ukraine.

Inflation has since receded to 4.83 per cent from its peak in 2022 above seven per cent.

Friday's figures put India's economic growth higher than China, Western nations and all other major emerging economies, according to International Monetary Fund (IMF) forecasts from April.

The IMF expects growth to taper slightly to 6.5 percent for the 2024-25 fiscal year, against the Indian central bank's forecast of seven percent.

India posted world-beating growth of 8.2 per cent in the year to March on Friday, in a last-minute boost to Prime Minister Narendra Modi's economic credentials the day before national elections conclude.

India posted world-beating growth of 8.2 per cent in the year to March on Friday, in a last-minute boost to Prime Minister Narendra Modi's economic credentials the day before national elections conclude. The world's most populous country also remains its fastest growing major economy thanks to robust demand and huge government infrastructure spending. That has kept sentiment positive about India's overall economic trajectory despite chronic unemployment and immense welfare outlays to hundreds of millions of poverty-stricken citizens. Strong growth in the manufacturing and mining sectors contributed to India's annual growth numbers, which beat both government and analyst projections. Also read: India's Economic Ascent: Projected to grow 6.8 pc in FY25 India's economy also recorded 7.8 per cent growth for the March quarter, higher than the government's projection of 5.9 per cent. The figures from India's statistics ministry were published a day before the country concludes voting in general elections staged over six weeks. Analysts widely expect Modi's Hindu nationalist government to win a third term once results are counted on Tuesday. The 73-year-old premier has pledged to make India the world's third-biggest economy after the United States and China by the end of the decade. Watch: US Economy grows slower than previously estimated in Q1 - WION × Modi's ruling Bharatiya Janata Party (BJP) has vowed if re-elected to maintain its focus on infrastructure spending and keep in place popular subsidies including free rations for needy families and cash handouts for farmers. Its re-election campaign has been aided by a campaign war chest that dwarfs its rivals thanks to donations from some of India's biggest conglomerates. The BJP received $730 million in five years from leading companies and wealthy businesspeople through electoral bonds, a contentious political donation tool since ruled illegal by India's top court, making it by far the biggest single beneficiary. But Modi's government has struggled to create enough jobs for the tens of millions of young Indians entering the workforce each year. The International Labour Organisation has estimated that 29 percent of India's young university graduates were unemployed in 2022. India emerged from the Covid-19 pandemic to be buffeted by a new set of global headwinds, including price spikes in global oil and food markets as a result of the war in Ukraine. Inflation has since receded to 4.83 per cent from its peak in 2022 above seven per cent. Friday's figures put India's economic growth higher than China, Western nations and all other major emerging economies, according to International Monetary Fund (IMF) forecasts from April. The IMF expects growth to taper slightly to 6.5 percent for the 2024-25 fiscal year, against the Indian central bank's forecast of seven percent.

In major boost to Modinomics, India's economy expands 7.8% in Q4

India has one of the largest demographics of young people in the world, with 65 per cent of Indians being under 35 years old. This phenomenon drives a very large segment of working individuals towards our urban centres.

India has one of the largest demographics of young people in the world, with 65 per cent of Indians being under 35 years old. This phenomenon drives a very large segment of working individuals towards our urban centres. India's explosive growth is expected to continue—by 2030, it's projected that over 400 million people will call urban India home, highlighting the immense growth underway. Despite covering just 3 per cent of India's landmass, cities generate a staggering 60 per cent of its GDP, showcasing their economic importance. However, the lack of a cohesive national plan to manage this growth means urbanisation continues unchecked. This unchecked expansion is straining cities to their limits, evidenced by the emergence of massive slums where people live in dire conditions. The pandemic rendered a considerable chunk of India’s urban population homeless, forcing millions to walk back to their hometowns across the nation in one of the world’s largest reverse migrations. This clearly shows that our approach to urbanisation is mired in challenges, and curbing its spread is paramount. However, should the existing urban sprawls that have already become vital to the growth of our nation be excluded from this planning? It is necessary to map the 2,00,00,000 people who migrate from rural to urban areas daily in our country. To build new centres of growth that cater to future demands, potential areas where sustainable resources, renewable energy resources, and human capital may come together should be mapped and made available nationally. Government policies should be centred on these issues. Also Read: India's aggregate demand grows as rural spending rebounds: RBI I visualise these centres as satellite towns abutting rural areas and am not asserting that the entire rural population should migrate here. At the same time, this growing population’s agricultural needs must also be addressed in a sustainable, mechanised and more efficient growth-oriented path. When one member of the family, usually the male, leaves their rural setting and migrates across the country seeking work from, say, Uttar Pradesh, Bihar or Bengal to southern, western and northern India, it results in a fragmented family structure. The majority of rural India passes its knowledge bank of traditions, familial expectations and growth across generations by word of mouth. When these tightly woven bonds splinter, it creates a social rupture that the city has to address. Most of these migrants experience increased isolation and live in sub-optimal circumstances due to a lack of infrastructure, leading to Indian cities housing the largest slum populations in the world. The fragmentation of family structure has other serious repercussions. Whilst migration may lead to increased financial stability, in my opinion, it makes people devoid of choices. A large proportion of these migrants falls under the category of unskilled labour, resulting in a loss of generational skills. An example of this is the absence of vernacular construction techniques in the hilly regions of India, where people have forgotten how to build in that context. Instead migrant labour not familiar with the local architecture is building structures incompatible with the terrain and ecology that are now collapsing. This rapid urbanisation has led to a gap in demand and supply, especially in housing and infrastructure such as educational buildings, hospitals, and other essential services. Can this urbanisation really be equated to development? We recently had the opportunity to work on the Lodsi Community Project. Located in a remote part of Uttarakhand cut off from basic amenities like roads, electricity and water supply, it is a small 10,000 sq. ft. production facility for Forest Essentials, a luxury Ayurveda brand. The project was built during the pandemic by the people, for the people, using locally known construction methods. So not only does this initiative generate income, but it also promotes the community's growth. This, to me, is a prime example of decentralised growth. We created a small pocket of decentralised growth by tapping into the skills of the people and utilising the forest's natural resources. This was a private initiative, but it has helped us understand the need for a government policy that maps out sites where natural, renewable and human resources can be harnessed, which is critical for the nation's future. Watch: 'Liquid Tree’ that absorbs CO2 in urban areas Growth-oriented resources and government policies should be redirected to create a successful decentralised growth pattern. This will ensure that family structures are not ruptured, and people are encouraged to remain in an environment where their skills, traditions, and the oneness of being with their land and communities are maintained. This brings me to my next point of social sustainability: sustainability practised in growth cannot be devoid of the aspect of social sustainability. This roadmap, along with private initiatives, such as the local community project, is essential to produce a successful decentralised growth model. While government policies like the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and the Smart Cities Mission are a step in the right direction, they lack a cohesive blueprint. We need a national plan that pinpoints potential growth areas based on sustainable resources, renewable energy, and human capital. This map would guide both public and private investments toward a more equitable and sustainable future. (Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

Reimagining growth beyond the city

Argentina's economic activity fell by 8.4 per cent in March compared to the previous year, according to the country's official statistics agency, INDEC. This is the sixth consecutive monthly loss and the biggest reduction since 2020.

According to a Reuters poll, the March dip surpassed market estimates of a 6.9 per cent drop. The sharper-than-expected contraction demonstrates the major impact of libertarian President Javier Milei's strict cost-cutting policies since his administration began in December. Milei has implemented a stringent austerity program aimed at reducing skyrocketing poverty and lowering an annual inflation rate approaching 300 per cent.

According to INDEC data, nine industries had year-on-year reductions, with construction falling 29.9 per cent and the manufacturing industry losing 19.6 per cent. These sectors were the most severely damaged, contributing significantly to the overall drop in economic activity.

Economic activity numbers are regarded as an early indicator of future GDP developments. The March reduction comes after year-on-year drops of 3.0 per cent in February and 4.1 per cent in January, indicating a continuing downward trend.

Argentina's economic activity fell by 5.3 per cent overall in the fiscal year ended March. The protracted economic downturn highlights the difficulty that President Milei's administration faces as it attempts to stabilise the nation's economy under tough fiscal reforms.

(With inputs from Reuters)

Argentina's economic activity fell by 8.4 per cent in March compared to the previous year, according to the country's official statistics agency, INDEC. This is the sixth consecutive monthly loss and the biggest reduction since 2020.

Argentina's economic activity fell by 8.4 per cent in March compared to the previous year, according to the country's official statistics agency, INDEC. This is the sixth consecutive monthly loss and the biggest reduction since 2020. According to a Reuters poll, the March dip surpassed market estimates of a 6.9 per cent drop. The sharper-than-expected contraction demonstrates the major impact of libertarian President Javier Milei's strict cost-cutting policies since his administration began in December. Milei has implemented a stringent austerity program aimed at reducing skyrocketing poverty and lowering an annual inflation rate approaching 300 per cent. According to INDEC data, nine industries had year-on-year reductions, with construction falling 29.9 per cent and the manufacturing industry losing 19.6 per cent. These sectors were the most severely damaged, contributing significantly to the overall drop in economic activity. Economic activity numbers are regarded as an early indicator of future GDP developments. The March reduction comes after year-on-year drops of 3.0 per cent in February and 4.1 per cent in January, indicating a continuing downward trend. Argentina's economic activity fell by 5.3 per cent overall in the fiscal year ended March. The protracted economic downturn highlights the difficulty that President Milei's administration faces as it attempts to stabilise the nation's economy under tough fiscal reforms. (With inputs from Reuters)

Argentina’s economic activity plummets 8.4 per cent in March, the steepest drop since 2020

The Indian-origin economist said that economies are reevaluating their trading partners based on economic and national security concerns following disruptions such as Covid-19 pandemic and Russia’s invasion of Ukraine. Economists have dubbed this phenomenon 'trade fragmentation'. She said that trade fragmentation is much more costly this time around, compared to the cold war. That's because the goods trade to GDP ration stood at just 16% at the start of the cold war. That ratio now stands at 45%. Higher the ratio, lesser is the trade.

Gita Gopinath: Sanctions risk driving gold rush in China-led bloc

The Eurozone's economic recovery sputters at the start of the June quarter. While the first quarter likely saw subdued GDP growth after two-quarters of contraction, the June quarter started on a softer footing.

Eurozone's economic recovery remains a stop-and-go affair

The world's economy faces a significant threat from climate change. A new study predicts a $38 trillion reduction in global GDP by 2050 due to rising temperatures and extreme weather events. This translates to an average global income loss of 19% compared to a scenario without climate change.

Study says climate change to shrink global GDP by $38 trillion by 2050

With 48 seats, the Indian state of Maharashtra sends the second-most number of lawmakers to the lower house of parliament. But the western Indian state is also a powerhouse, driving India's global ambitions. On Pollnomics today, we look at the state of Maharashtra's economy and why it matters to India's political economy.

Maharashtra has the largest state GDP in India at $435 BN

UK Defense Secretary Grant Shapps has warned NATO countries that do not spend 2% of GDP on defense spending and that they are playing Russian roulette with the West's future. Watch to know more!

UK Defence Secretary Grant Shapps says, 'NATO allies must pay 2%'

The US Congressional Budget Office (CBO) released its latest projections on the federal government's debt, painting a concerning picture. The report estimates that debt will surge to 116% of GDP by 2034, exceeding levels even seen during world war ii. This alarming trajectory is fuelled by a combination of factors, including rising interest rates and ongoing spending pressures.

US debt projected to reach 116% of GDP by 2034

The growth forecast has been made for the Indian economy. The Indian economy is projected to grow at 7.5% in 2024, says the World Bank. The increase in the projected growth rate for the Indian economy comes following 8.4% surge in the country’s GDP.

World Bank raises India’s GDP growth forecast to 7.5%

India's economy continues to be a bright spot in the global economy. While others are struggling to achieve economic momentum, India is on its way to becoming a $5 trillion economy. Various factors will play a role in India's next big economic milestone. This report sheds light on the role of states in guiding India towards its vision.

Indian states aim trillion-dollar GDP

A World Bank report has found that no country in the world offers women the same opportunities as men at work place. The Global gender gap is far worse than aniticpated and closing it could raise the world's GDP by over 20%.

Gravitas | World Bank Report: Global gender gap is far wider than you think

Indian states aims to become a $5 -trillion gross domestic product (GDP) by 2027, and to become the third largest economy in the world. Watch in for more details!

India aims to become a $5 trillion economy by 2027

Will India hold simultaneous polls at the state & central levels in the future? That's the million-dollar question in the minds of policymakers. Such an exercise will be unprecedented in size and execution. But will it also have a major socio-economic impact? We find out in this report.

India elections 2024 | Simultaneous polls: The economic impact?

India elections 2024 | Report: Higher GDP growth when simultaneous polls were held

Japan's economy managed to dodge a technical recession, as per revised government data released on Monday.

The revised Gross Domestic Product (GDP) figures for the October-December period indicated an expansion, although weaker than anticipated, sparking concerns over the slow economic recovery.

According to the Cabinet Office, the revised GDP expanded at an annualised rate of 0.4 per cent, a notable improvement from the initial estimate of a 0.4 per cent contraction.

However, this upward revision fell short of economists' expectations, with a median forecast predicting a 1.1 per cent uptick in GDP, as revealed by a Reuters poll.

Regardless of the revision, concerns lingered over the dull performance of domestic demand, particularly in consumption, as noted by Saisuke Sakai, senior economist at Mizuho Research and Technologies.

Sakai remarked, "The headline is an upward revision, but domestic demand remains lackluster, particularly in consumption".

The positive revision in GDP figures was primarily driven by a 2.0 per cent increase in capital expenditure quarter-on-quarter, surpassing the preliminary estimate of a 0.1 per cent decrease.

Nonetheless, it still fell short of the median market forecast of a 2.5 per cent rise.

On the other hand, private consumption, a component constituting approximately 60 per cent of Japan's economy, experienced a decline of 0.3 per cent in the October-December period, slightly worse than the initial estimate.

Factors such as seafood and household appliances contributed to the downward pressure on consumption.

External demand contributed 0.2 percentage points to real GDP, remaining unchanged from the preliminary reading.

However, concerns regarding the current quarter loomed large, with predictions of a potential contraction due to various factors such as the slowdown in the Chinese economy, production halts at Toyota Motor Corp, and weak consumption, as per Sakai.

He observed, "In the current January-March quarter, the Japanese economy could suffer contraction after factoring in the slowdown in the Chinese economy, production halt at a unit of Toyota Motor Corp, and weak consumption".

Amid the economic indicators pointing to weaknesses, speculation intensified regarding the Bank of Japan's (BOJ) upcoming decisions.

There were growing expectations that the BOJ might abandon its negative interest rates as early as the following month.

This anticipation was fueled partly by recent hawkish comments from board members, suggesting that Japan was progressing towards the central bank's 2 per cent inflation target.

Marcel Thieliant, head of Asia-Pacific at Capital Economics, suggested, "The Bank of Japan will likely abandon the negative interest rates by next month citing a growing prospect of hefty pay hikes at annual wage talks with labor unions".

The looming decision of the BOJ gained further attention with Japan's largest trade union confederation, Rengo, demanding pay raises this year, exceeding 5 per cent for the first time in three decades.

The BOJ has stressed strong wage growth as crucial for unwinding its radical monetary policies spanning over a decade.

However, recent economic data painted a contrasting picture, with real wages shrinking for the 22nd consecutive month in January, and household spending witnessing the largest drop in 35 months.

As the BOJ prepares for its two-day policy-setting meeting scheduled for March 18-19, the economic indicators and demands from labor unions add complexity to the central bank's decision-making process.

(With inputs from Reuters)

Japan's economy managed to dodge a technical recession, as per revised government data released on Monday. The revised Gross Domestic Product (GDP) figures for the October-December period indicated an expansion, although weaker than anticipated, sparking concerns over the slow economic recovery.

Japan's economy managed to dodge a technical recession, as per revised government data released on Monday. The revised Gross Domestic Product (GDP) figures for the October-December period indicated an expansion, although weaker than anticipated, sparking concerns over the slow economic recovery. According to the Cabinet Office, the revised GDP expanded at an annualised rate of 0.4 per cent, a notable improvement from the initial estimate of a 0.4 per cent contraction. However, this upward revision fell short of economists' expectations, with a median forecast predicting a 1.1 per cent uptick in GDP, as revealed by a Reuters poll. Regardless of the revision, concerns lingered over the dull performance of domestic demand, particularly in consumption, as noted by Saisuke Sakai, senior economist at Mizuho Research and Technologies. Sakai remarked, "The headline is an upward revision, but domestic demand remains lackluster, particularly in consumption". The positive revision in GDP figures was primarily driven by a 2.0 per cent increase in capital expenditure quarter-on-quarter, surpassing the preliminary estimate of a 0.1 per cent decrease. Nonetheless, it still fell short of the median market forecast of a 2.5 per cent rise. On the other hand, private consumption, a component constituting approximately 60 per cent of Japan's economy, experienced a decline of 0.3 per cent in the October-December period, slightly worse than the initial estimate. Factors such as seafood and household appliances contributed to the downward pressure on consumption. External demand contributed 0.2 percentage points to real GDP, remaining unchanged from the preliminary reading. However, concerns regarding the current quarter loomed large, with predictions of a potential contraction due to various factors such as the slowdown in the Chinese economy, production halts at Toyota Motor Corp, and weak consumption, as per Sakai. He observed, "In the current January-March quarter, the Japanese economy could suffer contraction after factoring in the slowdown in the Chinese economy, production halt at a unit of Toyota Motor Corp, and weak consumption". Amid the economic indicators pointing to weaknesses, speculation intensified regarding the Bank of Japan's (BOJ) upcoming decisions. There were growing expectations that the BOJ might abandon its negative interest rates as early as the following month. This anticipation was fueled partly by recent hawkish comments from board members, suggesting that Japan was progressing towards the central bank's 2 per cent inflation target. Marcel Thieliant, head of Asia-Pacific at Capital Economics, suggested, "The Bank of Japan will likely abandon the negative interest rates by next month citing a growing prospect of hefty pay hikes at annual wage talks with labor unions". The looming decision of the BOJ gained further attention with Japan's largest trade union confederation, Rengo, demanding pay raises this year, exceeding 5 per cent for the first time in three decades. The BOJ has stressed strong wage growth as crucial for unwinding its radical monetary policies spanning over a decade. However, recent economic data painted a contrasting picture, with real wages shrinking for the 22nd consecutive month in January, and household spending witnessing the largest drop in 35 months. As the BOJ prepares for its two-day policy-setting meeting scheduled for March 18-19, the economic indicators and demands from labor unions add complexity to the central bank's decision-making process. (With inputs from Reuters)

Japan's economy evades recession, but concerns persist over weak recovery

Women represent half of India's electorate. Their vote can make-or-break the fortunes of political parties. No wonder, women are key vote bank for them. Today, we look at how the political class is wooing women with welfare schemes.

Greater economic participation of women essential for India's growth

China has set the 2024 growth target for the economy at around 5%, which is not an easy task, Premier Li Qiang said on Tuesday (March 5).

China's annual Parliament meet: China sets 5% GDP growth target for 2024

The Indian economy grew 8.4% during the October-December quarter beating the estimates by the RBI and the Dalal Street. The RBI had pegged the growth for this quarter at 6.5%. Also, in a big move to reduce India’s dependency on imports to the requirement of semi-conductors, the government has approved setting up of 3 chip manufacturing units in the country.

India grows at 8.4% in October-December quarter

India’s Gross Domestic Product (GDP) grew 8.4 per cent in the third quarter (October-December quarter), according to the data released by the National Statistical Office (NSO) on Thursday (Feb 29)&nbsp;marking the fastest pace with which the economy grew in one-and-half years, beating all estimates.&nbsp;

<h2>India’s economic growth beats estimates</h2>

The economic growth reported for the third quarter was much higher than the estimated 6.6 per cent by economists, according to a&nbsp;Reuters poll.

It was also higher than the revised growth of 8.1 per cent in the previous quarter which stood at 7.6 per cent in the three months ending September 30.&nbsp;

Also Read |&nbsp;<a href="https://www.wionews.com/business-economy/decoding-the-modi-governments-white-paper-on-indian-economy-688601">Decoding the Modi government's white paper on Indian economy</a>

This growth has been attributed to strong manufacturing and construction activity in India.&nbsp;

Prime Minister Narendra Modi’s government has raised spending on infrastructure and incentivised manufacturing of phones, electronics, drones and semiconductors.&nbsp;

Manufacturing, over the past decade, has accounted for 17 per cent of India’s economy and expanded 11.6 per cent year-on-year in the December quarter.&nbsp;

Additionally, investment growth was above 10 per cent for the second consecutive quarter and the construction sector grew by more than nine per cent.&nbsp;

However, the farming sector which accounts for about 15 per cent of the Indian economy reduced by 0.8 per cent, compared with 1.6 per cent growth in the second quarter.

Also Read |&nbsp;<a href="https://www.wionews.com/business-economy/oecd-raises-india-and-global-growth-outlook-for-2024-687238">OECD raises India and global growth outlook for 2024, warns of Middle East crisis 'risk'</a>

The “robust” third-quarter growth “shows the strength of Indian economy and its potential,” said PM Modi, in a post on X.&nbsp;

He added, “Our efforts will continue to bring fast economic growth which shall help 140 crore Indians lead a better life and create a Viksit Bharat (Developed India)!”&nbsp;

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Robust 8.4% GDP growth in Q3 2023-24 shows the strength of Indian economy and its potential. Our efforts will continue to bring fast economic growth which shall help 140 crore Indians lead a better life and create a Viksit Bharat!
— Narendra Modi (@narendramodi) <a href="https://twitter.com/narendramodi/status/1763190679566475764?ref_src=twsrc%5Etfw">February 29, 2024</a></blockquote>
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&nbsp;

<h2>Growth estimates raised</h2>

The Ministry of Statistics and Programme Implementation data released on Thursday, also shows that the Indian economy is expected to grow&nbsp; at 7.6 per cent this year.&nbsp;

In its <a href="https://www.wionews.com/business-economy/indian-economy-to-grow-by-73-per-cent-says-governments-advance-estimate-676939">first estimates</a> released last month, the NSO had projected a growth of 7.3 per cent in 2023-24.&nbsp;

(With inputs from agencies) 
&nbsp;

India’s Gross Domestic Product (GDP) grew 8.4 per cent in the third quarter (October-December quarter), according to the data released by the National Statistical Office (NSO) on Thursday (Feb 29) marking the fastest pace with which the economy grew in one-and-half years, beating all estimates.

India’s Gross Domestic Product (GDP) grew 8.4 per cent in the third quarter (October-December quarter), according to the data released by the National Statistical Office (NSO) on Thursday (Feb 29) marking the fastest pace with which the economy grew in one-and-half years, beating all estimates. India’s economic growth beats estimates The economic growth reported for the third quarter was much higher than the estimated 6.6 per cent by economists, according to a Reuters poll. It was also higher than the revised growth of 8.1 per cent in the previous quarter which stood at 7.6 per cent in the three months ending September 30. Also Read | Decoding the Modi government's white paper on Indian economy This growth has been attributed to strong manufacturing and construction activity in India. Prime Minister Narendra Modi’s government has raised spending on infrastructure and incentivised manufacturing of phones, electronics, drones and semiconductors. Manufacturing, over the past decade, has accounted for 17 per cent of India’s economy and expanded 11.6 per cent year-on-year in the December quarter. Additionally, investment growth was above 10 per cent for the second consecutive quarter and the construction sector grew by more than nine per cent. However, the farming sector which accounts for about 15 per cent of the Indian economy reduced by 0.8 per cent, compared with 1.6 per cent growth in the second quarter. Also Read | OECD raises India and global growth outlook for 2024, warns of Middle East crisis 'risk' The “robust” third-quarter growth “shows the strength of Indian economy and its potential,” said PM Modi, in a post on X. He added, “Our efforts will continue to bring fast economic growth which shall help 140 crore Indians lead a better life and create a Viksit Bharat (Developed India)!” Robust 8.4% GDP growth in Q3 2023-24 shows the strength of Indian economy and its potential. Our efforts will continue to bring fast economic growth which shall help 140 crore Indians lead a better life and create a Viksit Bharat! — Narendra Modi (@narendramodi) February 29, 2024 × Growth estimates raised The Ministry of Statistics and Programme Implementation data released on Thursday, also shows that the Indian economy is expected to grow at 7.6 per cent this year. In its first estimates released last month, the NSO had projected a growth of 7.3 per cent in 2023-24. (With inputs from agencies)

India's GDP grew 8.4% in Q3; economy expected to grow 7.6% this year

American chipmaker NVIDIA is now worth more than every country's GDP in the world except 11. Its market valuation has surpassed the likes of Russia, South Korea and Australia.

Gravitas | Nvidia worth more than the GDP of Russia

France's economic trajectory has taken a downward turn. Finance Minister Bruno Le Maire announced a revised growth forecast for 2024, slashing it from 1.4% to 1% due to multiple factors.

France lowers 2024 GDP growth forecast amid global uncertainty

Pakistan's debt crisis is looming high as the latest IMF package will be running out in a month. The elections that were held last week in the South Asian nation gave a grey picture of the political stability aspect. One of the biggest challenges of the newcomer government will be settling the debt crisis which has blown out of proportion. Watch in for more details!

Pakistan: Economic headache for new government

Despite the political theatrics that have been unfolding in Pakistan, we focus on the severe financial setbacks plaguing the economy. Watch in for more details!

Pakistan among worst-hit economies post pandemic

2023 was a comeback year for the world's wealthiest. The Bloomberg billionaires index states the collective net worth of the 500 richest increased by $1.5 trillion in 2023. to put that into context: the gains in 2023 is about half the GDP of UK, the world's sixth largest economy.

2023 marks $1.5 trillion in gains for the world's wealthiest

The International Monetary Fund (IMF) has issued a cautionary note, warning that India's general government debt could surpass 100 per cent of the gross domestic product (GDP) in the medium term, the Business Standard reported.&nbsp;

This alert, highlighted in the annual Article IV consultation report, emphasises the need for new financing sources, greater private sector investment, and climate-resilience measures. The IMF points out that substantial investment is required to enhance India's capacity to withstand climate stresses and natural disasters.&nbsp;

Government's Response and Disagreement &nbsp;

In response, the Indian government has asserted that sovereign debt risks are limited as it is primarily denominated in domestic currency. K.V. Subramanian, India's executive director at the IMF, challenged the IMF's claim, stating that despite historical shocks, India's public debt-to-GDP ratio has shown minimal fluctuations. The disagreement centres on the IMF's reclassification of India's exchange rate regime to a "stabilised arrangement".

IMF's Optimistic Outlook and Fiscal Consolidation&nbsp;

Despite the debt concerns, the IMF offers an optimistic outlook for India's economy in its Article IV report, projecting the potential for faster growth if key structural reforms are implemented. The report stresses the necessity for "ambitious" fiscal consolidation to curb public debt. It also outlines potential challenges, including global growth slowdown, commodity price volatility, and domestic weather shocks. The IMF underscored the impact of consumer demand and private investment on growth.&nbsp;

Steps to Tackle Public Debt&nbsp;

In October 2023, Finance Minister Nirmala Sitharaman revealed the government's commitment to exploring measures to reduce government debt. According to a report by Mint, the central government's debt, as of March 2023, stood at Rs 155.6 trillion, constituting 57.1 per cent of GDP. India faces challenges in enhancing credit ratings due to elevated debt levels and the heavy cost associated with servicing that debt. Despite being considered a 'bright spot' in the global economy, India grapples with challenges affecting sovereign investment ratings.&nbsp;

Challenges and the Rating Agencies' Perspective&nbsp;

The Economic Times reported that global rating agencies, including Fitch, S&amp;P, and Moody's, have accorded India the lowest investment-grade rating, citing concerns over weak fiscal performance, burdensome debt stock, and low GDP per capita. The 'K-shaped' growth phenomenon, exacerbated by the Covid-19 pandemic, has contributed to uneven income distribution, impacting India's sovereign rating. Experts contend that the quality of government expenditure improvement could positively influence economic growth.&nbsp;

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The International Monetary Fund (IMF) has issued a cautionary note, warning that India's general government debt could surpass 100 per cent of the gross domestic product (GDP) in the medium term, the Business Standard reported.

The International Monetary Fund (IMF) has issued a cautionary note, warning that India's general government debt could surpass 100 per cent of the gross domestic product (GDP) in the medium term, the Business Standard reported. This alert, highlighted in the annual Article IV consultation report, emphasises the need for new financing sources, greater private sector investment, and climate-resilience measures. The IMF points out that substantial investment is required to enhance India's capacity to withstand climate stresses and natural disasters. Government's Response and Disagreement In response, the Indian government has asserted that sovereign debt risks are limited as it is primarily denominated in domestic currency. K.V. Subramanian, India's executive director at the IMF, challenged the IMF's claim, stating that despite historical shocks, India's public debt-to-GDP ratio has shown minimal fluctuations. The disagreement centres on the IMF's reclassification of India's exchange rate regime to a "stabilised arrangement". IMF's Optimistic Outlook and Fiscal Consolidation Despite the debt concerns, the IMF offers an optimistic outlook for India's economy in its Article IV report, projecting the potential for faster growth if key structural reforms are implemented. The report stresses the necessity for "ambitious" fiscal consolidation to curb public debt. It also outlines potential challenges, including global growth slowdown, commodity price volatility, and domestic weather shocks. The IMF underscored the impact of consumer demand and private investment on growth. Steps to Tackle Public Debt In October 2023, Finance Minister Nirmala Sitharaman revealed the government's commitment to exploring measures to reduce government debt. According to a report by Mint, the central government's debt, as of March 2023, stood at Rs 155.6 trillion, constituting 57.1 per cent of GDP. India faces challenges in enhancing credit ratings due to elevated debt levels and the heavy cost associated with servicing that debt. Despite being considered a 'bright spot' in the global economy, India grapples with challenges affecting sovereign investment ratings. Challenges and the Rating Agencies' Perspective The Economic Times reported that global rating agencies, including Fitch, S&P, and Moody's, have accorded India the lowest investment-grade rating, citing concerns over weak fiscal performance, burdensome debt stock, and low GDP per capita. The 'K-shaped' growth phenomenon, exacerbated by the Covid-19 pandemic, has contributed to uneven income distribution, impacting India's sovereign rating. Experts contend that the quality of government expenditure improvement could positively influence economic growth. WATCH WION LIVE HERE

IMF sounds alarm on India's rising debt, warns of exceeding 100pc of GDP 

The International Monetary Fund (IMF) has lauded India's stellar economic performance, projecting the nation to contribute more than 16 per cent to global growth, thanks to robust growth fuelled by key reforms in digitisation and infrastructure. <o:p></o:p>

Nada Choueiri, the Mission of India at IMF, highlighted India's progress in an exclusive interview with PTI. She emphasised that India stands out among its peer countries as one of the fastest-growing large emerging markets, stating, "It's one of the fastest-growing large emerging markets and it's contributing, in our current projections, more than 16 per cent of global growth this year."<o:p></o:p>

The IMF's annual Article IV consultation with India, released on Monday, affirms the country's trajectory as one of the fastest-growing major economies globally. Despite facing global headwinds, including a slowdown in a fragmented world, India's prudent macroeconomic policies continue to drive its economic momentum.<o:p></o:p>

Choueiri underscored the government's commitment to infrastructure development, citing it as a crucial foundation for sustained growth. She noted India's sizable, young, and growing population, emphasising the potential for even stronger growth if harnessed through strategic structural reforms.<o:p></o:p>

Digitalisation stands out as a flagship reform, building a strong platform for increased productivity and future growth. The IMF's annual report recommends focusing on policy priorities such as replenishing fiscal buffers, ensuring price stability, maintaining financial stability, and fostering inclusive growth through comprehensive structural reforms while preserving debt sustainability.<o:p></o:p>

India's rebound from the pandemic has positioned it as a vital driver of global growth. Headline inflation, after a surge in FY2022-23, has moderated, and employment has surpassed pre-pandemic levels. The informal sector dominates, but formalisation is progressing, reflecting a resilient financial sector largely unaffected by global financial stress.<o:p></o:p>

The report also highlights India's hosting of the G20 presidency in 2023, showcasing the nation's role in advancing multilateral policy priorities on the global stage. According to the report, "Globally, India's 2023 G20 presidency has demonstrated the country's important role in advancing multilateral policy priorities."<o:p></o:p>

As the country prepares for general elections in April 2024, the IMF report notes that India has the potential for higher growth with additional labour and human capital, provided comprehensive reforms are implemented.<o:p></o:p>

Choueiri stressed the importance of political stability for investment and growth, citing research that underscores the need for a transparent and stable policy environment. The government's efforts to encourage the business environment, including the single national window, have been acknowledged, but there is still work to be done to streamline bureaucracy in some states. S<o:p></o:p>

he remarked, "It's a glass half full, they're still important procedures that are needed to simplify further. But there are important steps that were taken. For example, the single national window, the one-stop shop for companies is a very important one. But still, in many states, there's a lot of bureaucracy that needs to be tackled and streamlined and a lot of red tape. So this is also a work in progress that needs to be continued."<o:p></o:p>

The IMF advocates for labour reform in India, pointing out the abundance of untapped labour potential that needs concerted efforts in education, skilling, and increasing female labour force participation. Choueiri expressed the view, "India has in abundance labour. And Labour is not used to its potential in India. And so, in our view, there has to be a very concerted effort to make sure that the advantages and demographics in India are played up to the maximum.”<o:p></o:p>

Addressing risks, Choueiri mentioned the tricky external environment and the potential medium-term risks from climate change. She emphasized the need for proper management of these risks to ensure India's continued success. She cautioned that India was performing well and had tremendous potential, adding that several important policies needed to be addressed to harness that potential.<o:p></o:p>

(With inputs from PTI)<o:p></o:p>

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The International Monetary Fund (IMF) has lauded India's stellar economic performance, projecting the nation to contribute more than 16 per cent to global growth, thanks to robust growth fuelled by key reforms in digitisation and infrastructure.

The International Monetary Fund (IMF) has lauded India's stellar economic performance, projecting the nation to contribute more than 16 per cent to global growth, thanks to robust growth fuelled by key reforms in digitisation and infrastructure. Nada Choueiri, the Mission of India at IMF, highlighted India's progress in an exclusive interview with PTI. She emphasised that India stands out among its peer countries as one of the fastest-growing large emerging markets, stating, "It's one of the fastest-growing large emerging markets and it's contributing, in our current projections, more than 16 per cent of global growth this year." The IMF's annual Article IV consultation with India, released on Monday, affirms the country's trajectory as one of the fastest-growing major economies globally. Despite facing global headwinds, including a slowdown in a fragmented world, India's prudent macroeconomic policies continue to drive its economic momentum. Choueiri underscored the government's commitment to infrastructure development, citing it as a crucial foundation for sustained growth. She noted India's sizable, young, and growing population, emphasising the potential for even stronger growth if harnessed through strategic structural reforms. Digitalisation stands out as a flagship reform, building a strong platform for increased productivity and future growth. The IMF's annual report recommends focusing on policy priorities such as replenishing fiscal buffers, ensuring price stability, maintaining financial stability, and fostering inclusive growth through comprehensive structural reforms while preserving debt sustainability. India's rebound from the pandemic has positioned it as a vital driver of global growth. Headline inflation, after a surge in FY2022-23, has moderated, and employment has surpassed pre-pandemic levels. The informal sector dominates, but formalisation is progressing, reflecting a resilient financial sector largely unaffected by global financial stress. The report also highlights India's hosting of the G20 presidency in 2023, showcasing the nation's role in advancing multilateral policy priorities on the global stage. According to the report, "Globally, India's 2023 G20 presidency has demonstrated the country's important role in advancing multilateral policy priorities." As the country prepares for general elections in April 2024, the IMF report notes that India has the potential for higher growth with additional labour and human capital, provided comprehensive reforms are implemented. Choueiri stressed the importance of political stability for investment and growth, citing research that underscores the need for a transparent and stable policy environment. The government's efforts to encourage the business environment, including the single national window, have been acknowledged, but there is still work to be done to streamline bureaucracy in some states. S he remarked, "It's a glass half full, they're still important procedures that are needed to simplify further. But there are important steps that were taken. For example, the single national window, the one-stop shop for companies is a very important one. But still, in many states, there's a lot of bureaucracy that needs to be tackled and streamlined and a lot of red tape. So this is also a work in progress that needs to be continued." The IMF advocates for labour reform in India, pointing out the abundance of untapped labour potential that needs concerted efforts in education, skilling, and increasing female labour force participation. Choueiri expressed the view, "India has in abundance labour. And Labour is not used to its potential in India. And so, in our view, there has to be a very concerted effort to make sure that the advantages and demographics in India are played up to the maximum.” Addressing risks, Choueiri mentioned the tricky external environment and the potential medium-term risks from climate change. She emphasized the need for proper management of these risks to ensure India's continued success. She cautioned that India was performing well and had tremendous potential, adding that several important policies needed to be addressed to harness that potential. (With inputs from PTI) WATCH WION LIVE HERE

India contributes over 16% to global growth, IMF report reveals strong economic performance

South Africa's government turns to the business community to boost economic growth. The country aims to boost GDP by as much as six percentage points by fixing the country's collapsing ports and freight-rail network.

South Africa's plans to fire up economy | World Business Watch

JP-Morgan predicts a boost to the dollar from a polarising presidential race between Joe Biden and Donald Trump, which is likely lead to a trade war. They say that renewed tariff risk will have a positive impact on dollar. A 10% tariff on all goods might increase the value of the dollar by 4–6%.

Analysts: US trade tariffs to benefit the dollar

US Consumer confidence rose for the first time in four months in November, as optimism about the job situation rose. Following a downwardly revised 99.1 in October, the conference board's index rose to 102 this month. Consumers' short-term income and hiring prospects rose, raising the prospect for better sentiment. As inflation falls, consumers are receiving a break from years of price rises.

Decoding state of US Economy

Defying dire warnings of a recession, the US Economy grew almost 5% in the July to September quarter, as higher wages gave a much-needed boost to consumer spending and demand. At a 4.9%, this was the fastest pace of GDP growth in nearly two years. In fact, the US GDP expanded at a pace well above what fed officials regard as the non-inflationary growth rate of 1.8%. The economy was also helped by a rebound in residential investment after 9 straight months of decline, and a rise in government spending.

US economy: Blockbuster Q3 numbers

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