India likely to remain fastest growing major economy in 2024: Assocham

India retained the tag of the world's fastest-growing major economy, with its GDP expanding by a faster-than-expected rate of 7.6 per cent in the July-September quarter on booster shots from government spending and manufacturing.

PTI

December 28, 2023 / 16:57 IST

India likely to remain fastest growing major economy in 2024: Assocham

India is likely to remain the fastest-growing major economy in the world in 2024 on the back of strong consumer demand leading to a pick up in investment across sectors such as construction, hospitality and infrastructure including railways and aviation, Assocham said on December 28. India retained the tag of the world's fastest-growing major economy, with its GDP expanding by a faster-than-expected rate of 7.6 per cent in the July-September quarter on booster shots from government spending and manufacturing.

The country's Gross domestic product (GDP) growth of 7.6 per cent beat most estimates, including 6.5 per cent projected by the Reserve Bank of India (RBI). The growth compares to 6.2 per cent in the same quarter last year and 7.8 per cent expansion in the preceding quarter, official data released on December 28 showed.

India's GDP growth beat China's 4.9 per cent rise in July-September, while the Western economies are getting crushed under high-interest rates and energy prices. "India's macro picture looks quite convincing with the overall economy following a trend growth of seven per cent with critical building blocks combining to give it brighter prospects,' Assocham Secretary General Deepak Sood said.

According to the industry body, India Inc led by financials, construction, hotels, aviation, automobile and other manufacturing areas like electronics are on a strong pitch to further improve performance in the coming year. The trajectory is being helped by the low crude oil prices, keeping inflation in check with a big positive on raw material cost.

"Sectors like construction have several related industries which too have gained momentum. These include steel, cement, mining, electricity generation and consumer durables,' Assocham stated. The macro economic indicators including government balance sheet reflected in strong tax collections, record foreign exchange reserves, stability in the rupee against major currencies and signs of revival in merchandise exports are expected to further improve, it estimated.