India’s
GDP growth
stood at 7.8% for the first quarter of the current fiscal year, which is the fastest pace of growth for the Indian economy in a year. India is the fastest growing major economy in the world and is expected to maintain this title for the coming few years.
So, what’s driving India’s robust growth? How is the Indian economy managing to do well amidst a major global slowdown? In this week’s episode of TOI Business Bytes, Dharmakirti Joshi, Chief Economist at
CRISIL
Ltd gives detailed insights into India’s GDP growth story.
India GDP Growth Explained: Road To Indian Economy Becoming World’s 3rd Largest | Deep Dive Analysis
Watch the video above to know which sectors have been growth drivers and which have been growth drags. Also hear DK Joshi discuss the three biggest headwinds to India’s GDP growth in the coming months.
“I think 7.8% growth in the first quarter is likely to be the peak growth this year. After that, I think we’ll see a slowdown,” he said.
“Beyond that global slowdown is going to intensify. Number two, the 250 basis point rate hike that has been administered since 2022, will have some sobering effect on demand,” he said.
DK Joshi cautions that the biggest worry for the economy right now is monsoon and its impact on inflation. “August was very deficient and September is expected to be good. But the deficiency is quite large. And particularly given that there are the prices of cereals, pulses, milk, I think these have been high for a much longer time, even before the monsoon set,” he said that the overall growth forecast is still maintained at 6%. “And even at this rate, India will be the fastest growing
G20
country,” he said.
India recently became the world’s third largest economy and according to various projections is estimated to become the third largest in the next few years. DK Joshi details the road to sustained growth that will help India attain this crucial milestone and the reforms needed to ensure growth for all.
The CRISIL Chief Economist also explains how
manufacturing
will increase its share in India’s GDP in the coming years. However, he notes that the
services
sector will continue to be a big growth driver as India transitions to a middle income economy. Watch the video above to learn more about India’s “world beating” growth story at a time when the global economy is in doldrums.
