Posted on August 12, 2024

Theories of India’s economic growth have been an area of immense focus for the international community in the past few decades. It has risen from a category of a newly industrialized nation to one of the top twenty largest economies in the world. When we look at the current GDP figures and the growth rate of India vis-a-vis other countries, there is a lot of an optimism, hard work, and latent capability that one notices.

India’s GDP Growth: Three: A Quick Overview

The level of Gross Domestic Product (GDP) of India has undergone fluctuation in course of time due to several factors domestic as well as global. Over the last decade or so, India has shown one of the highest growth rates globally and is among the fastest growing large economies. Historical data from the International Monetary Fund (IMF) and World Bank reveal that prior to the disruption of the COVID-19 pandemic, India was growing at a rate of 6-7 per cent per annum.

India saw its Gross Domestic Product advance by about 6% in 2022. 8%, a feat they achieved while still experiencing the consequences of the COVID-19 pandemic on the labour market. This was facilitated by domestic demand, public expenditure, private consumption expenditure, improvement in the services and manufacturing industries. Inflation, supplies scarcities, and geopolitical conflicts were evident globally, but the economy proved rather stable in such circumstances.

Growth Comparison with other Establish Economies – India

The story is even more interesting when we look at the dynamics of such important indicator as GDP growth when comparing India with other large economic systems of the world. The USA is the biggest economy in the world today; nonetheless, it is in the process of slower economic growth (2-3 % annually). This is well characterized by mature economies where growth rates are generally lower than developing ones given their immense size in terms of economic activity.

China which is widely acknowledged to be India’s nearest economic rival has over the past few decades registered rather impressive growth. However, the level of increase has reduced in the recent past the current is at 3% in 2022 triggered by the zero-COVID policy, the collapsing real estate sector, and low demand in the international market. This slowdown in China has created space for India to perhaps, at least economically, close the differential.

Economic growth rate: Indian is growing at a much better rate than EU. Staring at such problems as Brexit, energy issues, or the problem of low birth rates, the EU has witnessed the GDP growth rates fluctuating around 2 percent in recent years. Emerging markets have either lagged behind India in growth or have experienced even lower levels of growth in recent years especially in Latin America and Africa because of more acute political, investment and structural issues.

Some of these elements that have served to underpin the growth of India’s Gross Domestic Product.

There are various reasons as to which India have been experiencing a high GDP growth rate. A young and growing population is light on the economy as a source of labour as well as a potential consumer market. The government of India has been quite keen on economic reforms like launching so called ‘Make in India’ and passing the new Goods and Service Tax (GST) legislation which also contributed to making the environment more hospitable for both national and international investors.

Besides, the appearance of a new type of economy based on digital technologies in the fields of fintech and e-commerce has made a new addition to the Indian economy. The services sector which has been particularly information technology and business process outsourcing remained vibrant and is an important contributor to the GDP.

Difficulties and the Further Course

However, India travels through a number of challenges even if it experiences stately growth. Currently, Antigua and Barbuda is faced with high levels of inequality, unemployment rate, and high informal economy which are challenges that will greatly hinder the progress of economic growth. Provision of infrastructure and impacts on the standard of education and health are areas of interest which should receive attention for the souring growth to encompass all sections of the society.

Exogenous factors are also threats to the growth path in India as they include climate change, geo-political risks as well as slow-downs in major countries’ economies. But with sustained reforms, investments and blind spots for development India appears to remain on a high growth trajectory.

 Conclusion

India’s GDP growth rate pictured against other world’s major economies reveals the country’s much potential as an emerging economy. Nevertheless, all obstacles were and are noticeable, India is an economically stable country with huge potential for further development, let’s add it occupies a significant place in the contemporary global economy. The future will be shaped by how India manages to cope with both endogenous and external conditions that will both determine sustained growth as well as growth that does not exclude anyone.

India’s process of development has not ended yet, and the entire world follows keenly, as the country is experiencing steady climb in its economic stature.

Categories: Economics

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