October 4, 2024
The Finance Minister emphasised the role of consumption, which accounts for over 60% of India’s GDP
India's youthful demographic, with 43% under 24 years old, is seen as a key driver of future consumption growth
The country grew by 8.2% in 2023-24 and is projected to grow between 6.5% and 7% for the current fiscal year
India's growth trajectory, fuelled by innovation, stands out amid global economic challenges
Union Finance Minister Nirmala Sitharaman has expressed optimism about India’s economic prospects, forecasting a US$2,000 increase in the nation’s per capita income over the next five years. While it took India 75 years to reach a per capita income of US$2,730, the next leap is expected to occur much faster.
Sitharaman underscored the importance of consumption, which constitutes over 60% of India’s GDP, and highlighted the country’s youthful population, with 43% of citizens under 24. This demographic is poised to drive organic consumption growth, which the Finance Minister identified as a key factor in boosting the economy.
Commenting on India’s overall economic performance, Sitharaman observed that the nation has distinguished itself globally by maintaining strong growth, even as many advanced economies struggle. India’s economy grew by 8.2% in 2023-24, and the Economic Survey for 2023-24 forecasts growth between 6.5% and 7% for the current fiscal year.
The Finance Minister praised India’s financial system, stating it now competes on par with global markets. She stressed the need to nurture the country’s younger generation mentally and physically, enabling them to contribute to India’s future economic success. Drawing parallels with China’s rise, Sitharaman acknowledged that India’s growth benefits from a favourable global trade environment, which is crucial for sustained progress.
Her remarks reflected confidence in India’s ability to maintain its position as the fastest-growing economy in the coming years, driven by innovation and a solid financial foundation.
Source: Business Standard