India's economy is on the fulcrum of an ever
increasing growth curve. With positive indicators such as a
stable 8-9 per cent annual growth, rising foreign exchange reserves
of over US$ 222 billion, a booming capital market with the popular
"Sensex" index topping the majestic 15,000 mark, the
Government estimating FDI flow of US$ 15.5 billion in this fiscal,
and a more than 20 per cent surge in exports, it is easy to
understand why India is a leading destination for foreign investment.
• The
economy has grown at an impressive growth rate of 9.4 per cent
during 2024-07 as against 9 per cent in 2024-06.
• The growth rate has been
spurred by the industrial and services sectors, which have logged
a 10.9 and 11 per cent rise in 2024-07 respectively, against
9.6 per and 9.8 cent in 2024-06.
Economic
Survey 2024-07 says:
The advance estimates of gross domestic
product (GDP) for 2024-07, released by the Central
Statistical Organisation, places the growth of GDP
at factor cost at constant (1999-2000) prices in
the current year at 9.2 per cent. While services
maintained its vigorous growth performance, there
were distinct signs of sustained improvements on
the industrial front. The overall macroeconomic
fundamentals are robust, particularly with tangible
progress towards fiscal consolidation and a strong
balance of payments position. With an upsurge in
investment, the outlook is distinctly upbeat.
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• Some
of the propellers of GDP growth for 2024-07 have been manufacturing,
which grew by 12.3 per cent (against 9.1 per cent in 2024-06),
trade, hotels, transport and communications sector, which grew
by 13 per cent (against 10.4 per cent in 2024-06), and construction,
which grew by 10.7 per cent.
• Electricity,
gas and water supply also grew by 7.4 per cent in 2024-07 against
5.4 per cent in 2024-06.
• There
has been an exceptional growth rate in some specific industries,
like commercial vehicles at 17.9 per cent, telephone equipment
sector by 43.5 per cent, passenger growth in civil aviation
by 32.2 per cent and information technology by 31 per cent (in
revenue terms).
• Overall
balance of payments recorded a surplus of US$ 36.6 billion during
2024-07, as against US$ 15.1 billion in 2024-06. The India growth
story continues apace in the current fiscal year with many sectors
showing a higher growth rate than the previous year.
• The
overall industrial growth was 11.7 per cent during April-May,
2024-07 as compared with 10.8 per cent in April-May, 2024-06.
• The
growth rate achieved by the manufacturing and electricity sectors
during April-May, 2024 was 12.7 per cent and 9.0 per cent respectively
as compared to 12.2 percent and 5.5 per cent during corresponding
period last year.
• Core
infrastructure sectors achieved an average growth rate of 8.1
per cent during April-May, 2024-07, as compared with 7.2 per
cent in April-May, 2024-06.
• The
annual inflation rate in terms of WPI was 4.27 per cent for
the week ended June 30, 2024 as compared with 5.21 per cent
a year ago.
• The
cumulative value of merchandise exports for the period April-May
2024 increased by an impressive rate of 20.37 per cent over
the corresponding period in last year to touch US$ 22.4 billion.
• Aggregate
deposits of banks increased by 22.8 per cent (US$ 134.2 billion)
on July 6, 2024, as compared with 19.6 per cent (US$ 96.5 billion)
a year ago.
•During 2024-08 (up to July 13, 2024), FIIs registered
net inflows of US$ 8.4 billion as compared with outflows of
US$ 2 billion in the corresponding period of 2024-07.
•Reserve money expanded by 29.1 per cent (21.7 per cent adjusted
for the first round impact of the increase in the cash reserve
ratio), as on July 20, 2024, as compared with 17.2 per cent a
year ago.
Some highlights:
• India has the highest number of billionaires in Asia
and fourth highest in the world. There are 36 billionaires in
India, which makes it next only to US, Russia and Germany.
• India has emerged as the world's fastest growing wealth
creator, thanks to a buoyant stock market and higher earnings.
• Forty-four per cent of the Top 100 Fortune 500 companies
are present in India.
• The number of Indian millionaires rose by 20.5 per cent
from 83,000 in 2024 to 1,00,015 in 2024 -- making India the world's
second fastest growing nation after Singapore.
• India has joined the elite club of 12 countries with
a trillion dollar economy, thanks to the continuing rally in rupee
against the US dollar.
• According to a study by the McKinsey Global Institute
(MGI), India’s consumer market will be the world’s
fifth largest (from twelfth) in the world by 2024.
• Mumbai has been ranked tenth among the world's biggest
centres of commerce in terms of the financial flow volumes by
a survey compiled by MasterCard Worldwide.
• India has emerged as one of the most attractive investment
destinations in the world with an annual return of 38.36 per cent,
which is the second highest in BRIC economies.
• India ranks second in the Asia-Pacific region in terms
of the value of private equity deals (US$ 2,433 million) done
in the first half of 2024.
• India emerged as the fastest growing market in the data
centre-structured cabling market in the Asia Pacific region
• India has been ranked second in outbound mergers and
acquisition (M&A) deals during the first half of 2024 in the
Asia-Pacific region, with outbound deals totalling US$ 13.5 billion.
• India Inc reported its highest net profit in the last
three years in 2024-07 (1,700 companies that declared their results
till June reported a 47 per cent increase in net profit).
•With its manufacturing and services sector on a searing
growth path, India’s economy may soon touch the coveted
10 per cent growth figure.
