Finmin backed Economic Review Report shows stable growth momentum

India’s robust economic performance is standing firm despite retarded global growth, according to the monthly economic review report from the Department of Economic Affairs, Ministry of Finance.

Finmin backed Economic Review Report shows stable growth momentum

The Recent data shows that India’s economic growth hit a six-quarter high in Q3FY24, surpassing 8% for the third consecutive time, surpassing the momentum of previous quarters. The second advance estimate for economic growth in FY24, released after incorporating updated information, has bolstered the optimism about the economy.

The report shows stable consumption along with strong investment as key drivers of growth. The government is focusing on public investment by not only encouraging private investment but also increasing demand, propelling sectors like manufacturing and construction.

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The government is concentrating on encouraging trends in employment, as indicated by three recent data releases, further contributing to the positive economic outlook. The latest results of the Periodic Labour Force Survey indicate both unemployment rates and labor force participation have shown promising trends.

The upward revision of GDP growth estimates for FY24 stresses the economy’s strength, with various institutions projecting growth rates of around 8%. Government-led initiatives, particularly in infrastructure and technology such as the “India AI Mission”, are driving investment and innovation, further bolstering economic prospects.

 

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With steady consumption and expectations of a normal monsoon in FY25, the outlook for rural demand remains positive. The latest Household Consumption Expenditure Survey (HCES) 2022-2023 results suggest inclusive growth in the past decade, also reiterating the improved rural demand scenarios.

 

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