India a standout performer amidst sluggish global growth trends: Econ Affairs Secy

India’s growth: India's Economic Affairs Secretary, Ajay Seth, addressed the Development Committee meeting of the World Bank, highlighting India's remarkable economic performance amidst global challenges. He noted that India's GDP growth estimate for the fiscal year has been revised upwards to 7.6 per cent, reflecting the economy's resilience and strength.

Seth emphasised India's consistent growth, with GDP exceeding 8 per cent for three consecutive quarters in FY24, positioning the country as a standout performer amid sluggish global growth trends. Various agencies have revised India's growth estimate closer to 8 per cent, applauding its proactive reforms and investment strategies as benchmarks for emerging economies.

The secretary outlined India's focus on capital expenditure (capex) and private investment, resulting in enhanced Gross Fixed Capital Formation (GFCF) growth of over 10 per cent in FY24. He also highlighted positive trends in inflation, with both headline and core inflation trending downwards.

On the external front, Seth mentioned improvements in the merchandise trade deficit and rising net services receipts, expected to enhance the current account balance in fiscal 2024.

In the realm of technology, Seth announced the approval of the "India AI Mission" with a budget of INR 103 billion, aimed at fostering AI innovation, developing indigenous capabilities, and promoting AI startups.

Highlighting India's economic diversity, Seth pointed out double-digit growth in the manufacturing sector driven by investment and domestic demand, as well as strong growth in services, particularly non-contact-intensive sectors.

Seth underscored India's leadership in digital transactions, with a 46 per cent share of global real-time transactions in 2022. He noted a significant increase in UPI online transactions due to convenience, security, and increased financial flexibility.

Reflecting on India's robust capital market, Seth highlighted its performance among emerging markets, citing an increase in dematerialisation (DEMAT) accounts due to a transparent trading system and favourable investment climate.

Overall, Seth's address showcased India's economic prowess, sustained growth trajectory, and commitment to technological innovation and inclusive economic development.

With PTI Inputs