India might remain fastest-growing major economy next year: Assocham
India is on track to retain its title as the world's fastest-growing major economy in 2024. This is because of strong consumer demand and higher investments in areas like construction, hospitality, and infrastructure, according to Assocham. The nation's GDP grew by an impressive 7.6% in the July-September quarter of the current fiscal year, outpacing most predictions, including the Reserve Bank of India's (RBI) 6.5% estimate.
Factors contributing to India's economic growth
Assocham Secretary General Deepak Sood said India's economic outlook appears promising, with a steady growth rate of around 7%. Low crude oil prices contribute to this growth by keeping inflation under control and positively affecting raw material costs. Industries such as construction, hotels, aviation, automobiles, and manufacturing sectors like electronics are expected to see even better performance in the coming year.
Macroeconomic indicators and future prospects
Positive macroeconomic indicators, including strong tax collections, record foreign exchange reserves, a stable rupee against major currencies, and a resurgence in merchandise exports, are anticipated to further boost India's economy. Assocham also highlighted that construction-related industries like steel, cement, mining, electricity generation, and consumer durables have gained momentum. India's 7.6% GDP growth surpassed China's 4.9% growth in the same period and outperformed Western economies grappling with high-interest rates and energy costs.
