India’s economy continues to be one of the fastest growing economy in the world, which is a wonder and inspiration for not only the country but for the whole world. Despite the recent estimates issued by the IMF and the World Bank, India has denied all the forecasts by registering a growth rate of 6.5 per cent in FY 2024-25. This growth rate is surprising many large economies including China.
IMF and World Bank estimates failed
About a month ago, the International Monetary Fund (IMF) predicted India’s growth rate that it would be limited to about 6.2 per cent in 2025. According to him, this growth was particularly supported by personal consumption in rural areas, but due to global uncertainties and trade stress, a limited increase in its speed could be seen. At the same time, the World Bank announced India’s growth rate of 6.3 per cent for FY 2025-26, which was slightly lower than their previous estimate of 6.7 per cent. The World Bank had seen it with global economic recession and domestic policy uncertainties. But the recent data of the Government of India has challenged all these estimates. India recorded a stable and better growth of 6.5 per cent in FY 2024-25, which is not only more than the IMF estimate but also close to the revised estimate of the World Bank.
RBI forecasts come true
The Reserve Bank of India also earlier described India’s growth in its estimate as 6.5 per cent, which has now proved accurate. RBI had said that investment and production would improve with the cooperation of monetary policy, which will strengthen economic growth. Although the RBI had earlier raised a little more expectation, 6.5 per cent was estimated in view of global and domestic challenges, which has now come out in reality.
Government figures and economic scenario
According to the National Statistics Office (NSO), India’s economic growth rate in the last quarter of FY 2024-25 stood at 7.4 per cent, while the growth rate of the entire year remained at 6.5 per cent. This growth rate is slightly lower than the previous financial year, but it is considered a strong performance keeping in mind the existing global economic status and subsequent effects of epidemic. The size of India’s economy has also increased to about $ 3.9 lakh crore (Rs 330.68 lakh crore), which was $ 3.6 lakh crore in FY 2023-24. This increase is a sign of stability and strength of Indian economic development.
Finance Minister Nirmala Sitharaman’s response
Finance Minister Nirmala Sitharaman said after the growth figures were released that India remained the fastest growing economy for the fourth consecutive year. He cited small, medium and large industries, service sector and agricultural sector as the reason for this success. He said that the manufacturing sector performed well in the March quarter, which helped maintain the growth rate of the entire financial year.
Estimation of growth for future
According to the RBI, India’s growth rate is estimated to be around 6.5 percent in FY 2025-26, with the first quarter 6.5%, the second quarter 6.7%, the third 6.6% and the fourth quarter 6.3%. The strong position of the agricultural sector, improvement in manufacturing and stability of the service sector will be the main reasons.
China’s concern increased
China’s eyes have also been stuck on this magnificent growth of India. China’s economy rose only 5.4 per cent in the March quarter, which is much lower than India’s 7.4 per cent growth rate. This difference has created a matter of concern for China as foreign investors may be more attracted to India. India’s better growth rate and stable economic development have made it a better destination for global investment.
conclusion
India’s economy has not only proved the estimates of global institutions like IMF and World Bank, but has also given a tough competition to a big economy like China. This growth is the result of the country’s strong economic foundations, better policies and contribution of diverse economic sectors. How this growth rate of India persists in future will be important for the global economic scenario, but currently India’s economic success is a major achievement which is inspiring for the whole world.
