India’s economy grew more than 8% in the fiscal year that ended in March, according to data released Friday, boosting Prime Minister Narendra Modi just hours before the country wraps up a mammoth, weeks-long national election.
Gross domestic product (GDP) rose 8.2%, cementing India’s status as the world’s fastest-growing major economy, according to the statistics ministry. The growth rate was higher than the Modi government’s forecast of 7.6%.
In the last quarter of the fiscal year, GDP grew faster than expected by 7.8% compared to the same period in 2023. In the period from October to December, GDP grew by 8.6%.
“While we expect economic activity to slow further in the coming quarter, India will continue to outperform globally,” said Ankita Amajoli, associate economist at Capital Economics.
There are less than 24 hours left until the polls close in the election.
Also Read:
- Is display manufacturing the next big thing for India?
- RBI Shifts 100 Tonnes of Gold From UK To India
Modi is riding on his economic records of the past 10 years, a period of strong growth for India. During that time, the country went from the ninth largest economy in the world to the fifth largest. It has also seen the largest percentage growth in GDP compared to other major economies over a decade.
The results will be announced on June 4. If Modi wins a third term, “any slowdown (in the economy) will be mild,”
“India is the only economy after China that can achieve economies of scale due to its large market,” Nomura economists wrote in a note earlier this week.
“India is one of the few economies that is attracting investor interest across sectors,” they added.
Despite the euphoria surrounding the growth numbers, economists say the Indian economy will face enormous challenges in the next decade.
The new government must create hundreds of millions of jobs for a population that is mostly poor.
