Despite a challenging global environment, India’s economy has grown strongly over the past year, driven by steady consumer and investment demand.
The fiscal GDP growth projection, which was raised from 7.3% to 7.6% in the second advance estimates, demonstrates the Indian economy’s continued strength and durability.
India’s growth rate was above 8% for three consecutive quarters in FY24, confirming its position as a standout performer against lacklustre global growth trends. An official delegation from India will attend this year’s annual Spring Meeting of the International Monetary Fund and the World Bank.
India’s focus on capex continued to attract private investment, resulting in increased Gross Fixed Capital Formation (GFCF) at constant prices, which grew by more than 10% in FY24.
India’s inflation forecast is favourable, with headline and core inflation heading downward, indicating a broad-based decrease in pricing pressures.
The India AI Mission, with a budget of INR 103 billion, has been approved by the Centre to catalyse and democratise the country’s Artificial Intelligence (AI) innovation ecosystem. The mission will build computing infrastructure, develop indigenous AI capabilities, streamline access to datasets, attract AI talent, and finance AI startups.
The Mission’s goal is to build a strong AI ecosystem through targeted programmes and partnerships in both the public and private sectors. The emphasis on infrastructure and technology is projected to move India forward in technical innovation while also consolidating and solidifying its place in the global supply chain.
India had the biggest number of digital transactions in the world, accounting for 46% of worldwide real-time transactions in 2022. Monthly transactions in March 2024 were 13.44 billion, totalling INR 19.78 trillion.
India’s capital market has remained one of the best performing among emerging markets in FY24, thanks to its strong economic stature and continued expansion in the global economy.
With the robust investment climate and technology-anchored transparent trading system, the Indian equity market has seen a significant increase in the number of dematerialization (DEMAT) accounts in recent months.