India has reported surprisingly robust economic growth, ending 2023 on a high note and providing a boost to Prime Minister Narendra Modi just weeks before an election that could give him a third term in office.
Gross domestic product (GDP) in the world’s fastest growing major economy surged 8.4% in the final three months of 2023 compared with a year prior, up from growth of 7.6% in the June-to-September period, the country’s statistics office said Thursday.
The latest increase was much stronger than analysts expected and means India’s economy “ended last year with a bang,” Thamashi De Silva, assistant India economist at Capital Economics, wrote in a note.
“That pace of growth was the strongest among major economies last quarter,” she added.
The data will further bolster optimism over the economic prospects of the world’s most populous nation.
According to a report Wednesday from real estate consultancy Knight Frank, the number of ultra-rich Indians, those with a net worth of at least $30 million, will rise 50% over the five years to 2028, the biggest increase globally.
Buoyed by the strong GDP numbers, India’s stock markets hit new all time highs on Friday. Indian investors have been driving shares steadily higher over the past 12 months, pushing the combined value of companies listed on India’s exchanges above $4 trillion late last year.
The International Monetary Fund expects India’s economy to expand by 6.7% for the fiscal year through March, while the Modi government has a much higher estimate of 7.6%. The IMF projects the economy to grow by 6.5% in the fiscal year starting April 1.
“Robust 8.4% GDP growth…shows the strength of Indian economy and its potential,” Modi said on X Thursday.
“Our efforts will continue to bring fast economic growth which shall help 140 crore [1.4 billion] Indians lead a better life.”
A sustained expansion will rapidly push India up the rankings of the world’s biggest economies. Analysts at Jefferies expect the country to become the world’s third-largest economy by 2027, up from fifth currently.Source: CNN
