India likely to remain fastest growing major economy in FY'24

India is expected to maintain its position as the fastest-growing major economy globally in 2024. This projection is attributed to robust consumer demand, which is anticipated to drive increased investment across various sectors, including construction, hospitality, and infrastructure, encompassing railways and aviation, the Associated Chambers of Commerce and Industry of India (Assocham) said on Thursday. India has retained its status as the world’s fastest-growing major economy, with a GDP growth rate of 7.6 per cent in the July-September quarter. This growth exceeded expectations, primarily fuelled by government spending and advancements in manufacturing. The country’s Gross domestic product (GDP) growth of 7.6 per cent beat most estimates, including 6.5 per cent projected by the Reserve Bank of India (RBI). The growth compares to 6.2 per cent in the same quarter last year and 7.8 per cent expansion in the preceding quarter, official data released on Thursday showed. India’s GDP growth beat China’s 4.9 per cent rise in July-September, while the Western economies are getting crushed under high interest rates and energy prices. “India’s macro picture looks quite convincing with the overall economy following a trend growth of seven per cent with critical building blocks combining to give it brighter prospects,’’ Assocham Secretary General Deepak Sood said. According to the industry body, India Inc led by financials, construction, hotels, aviation, automobile and other manufacturing areas like electronics are on a strong pitch to further improve performance in the coming year. The trajectory is being helped by the low crude oil prices, keeping inflation in check with a big positive on raw material cost.“Sectors like construction have several related industries which too have gained momentum. These include steel, cement, mining, electricity generation and consumer durables,’’ Assocham stated. The macroeconomic indicators including the government balance sheet reflected in strong tax collections, record foreign exchange reserves, stability in the rupee against major currencies and signs of revival in merchandise exports are expected to further improve, it estimated.