Finance Minister Nirmala Sitharaman told the Parliament during its winter session on Thursday that not only was India’s economy expanding at the quickest rate in the world, but it also had the greatest growth rate globally in the second quarter of the current fiscal year (Q2FY24).
Speaking about the advancements made by the Indian economy under the leadership of Prime Minister Narendra Modi, the finance minister said that the nation’s economy had risen from being the tenth largest in 2014 to the fifth largest in 2023. Furthermore, with a growth rate of 7.6% during the July-September quarter, India saw the biggest increase.
According to Sitharaman, “India continues to be the fastest-growing economy in the world, and its growth in the second quarter was the greatest globally. Along with rising economies, the economies of Japan and Germany, the third and fourth largest, have shrunk. India’s growth of nearly 7% is noteworthy in contrast.”
Manufacturing is being driven by PLI initiatives and the Made in India program.
The Rajya Sabha was also told by the finance minister that the manufacturing sector in India has grown at its fastest rate ever in Q2FY24, at 13.9%. Sitharaman attributed this to PM Modi’s “Make in India” campaign and the several production-linked incentive (PLI) programmes the Bharatiya Janata Party (BJP) government introduced.
“Every industry is expanding dramatically. In addition to its substantial economic contribution, the manufacturing sector is benefiting from PM Modi’s programs and the Made in India program. The manufacturing sector makes for 13.9% of the total GDP. In November, the Purchasing Managers Index (PMI) was 56. Since it is in an area that is prone to expansion, steady growth is suggestive of growth, the speaker stated.
Additionally, she cautioned against comparing India’s PMI with those of other developed countries since India was experiencing an expansionary phase while others were reporting contractionary statistics.
India’s exports continue to grow despite a decline in worldwide demand FM According to Sitharaman, India’s GDP increased by 9.43% year over year in October 2023 to $62.26 billion. She stated, “In spite of the consumption and demand coming down in western economies, our exports are doing well.”
Furthermore, the World Trade Organization (WTO) had projected that merchandise trade would expand by just 0.8%; nevertheless, India exceeded expectations, achieving a 6.21 percent increase.
India was apparently the second-largest maker of mobile phones last year (2022–2023), with $10 billion in exports.
Growth in direct tax This year, direct tax revenue increased by 21.82%, while monthly GST revenues stabilized at Rs 1.6 trillion. The FM said that this indicates an indication of economic progress.
“States receive 100% of state GST; nobody touches it,” the FM continued. Furthermore, according to the finance commission’s recommendations, states receive 41% of the central GST (CGST) share and 50% of the integrated GST (IGST).
“India is the second most sought-after manufacturing destination in the world,” Prime Minister Nirmala Sitharaman told the Upper House during the current winter session of Parliament.
The FM had previously declared earlier in the day that no “spectacular announcements” on the budget would be made on February 1, 2024. A vote-on-account would take place prior to the general elections in 2024, she continued.
