India’s economy grows 8.2%

AFP | Mumbai 

The Daily Tribune – www.newsofbahrain.com

India posted world-beating growth of 8.2% in the year to March yesterday, in a last-minute boost to Prime Minister Narendra Modi’s economic credentials the day before national elections conclude.

The world’s most populous country also remains its fastest growing major economy thanks to robust demand and huge government infrastructure spending.

Strong growth in the manufacturing and mining sectors contributed to India’s annual growth numbers, which beat both government and analyst projections.

Finance minister Nirmala Sitharaman said the result showed India’s economy was “resilient and buoyant despite global challenges”. India’s economy also recorded 7.8% growth for the March quarter, higher than the government’s projection of 5.9%.

ICRA chief economist Aditi Nayar told AFP that the result “exceeded both our and market expectations”.

The figures from India’s statistics ministry were published a day before the country concludes voting in general elections staged over six weeks.

India emerged from the Covid-19 pandemic to be buffeted by a new set of global headwinds, including price spikes in global oil and food markets as a result of the war in Ukraine. Inflation has since receded to 4.83% from its peak in 2022 above seven percent.

Friday’s figures put India’s economic growth higher than China, Western nations and all other major emerging economies, according to International Monetary Fund (IMF) forecasts from April.

The IMF expects growth to taper slightly to 6.5% for the 2024-25 fiscal year, against the Indian central bank’s forecast of 7%.