India to remain world’s fastest growing economy in 2024, driven by public spending, services sector
Its robust performance last year alone accounted for more than three-quarters of South Asia’s growth, the fastest among emerging market and developing economy regions, according to the World Bank.

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MUMBAI: India is expected to maintain its place as the world’s fastest growing major economy this year, according to economists.
Various factors are helping to drive this growth, including a boost in government spending and a vibrant services sector.
Its robust performance last year alone accounted for more than three-quarters of South Asia’s growth, the fastest among emerging market and developing economy regions, according to the World Bank.
However, inflation remains a concern for business owners in the world’s most populous country.
CONCERNS OVER INFLATION
While business owners are glad that India’s economy is back in full swing, they are also worried about inflation, with India’s consumer price index (CPI) hovering above 4.25 per cent in 2023.
Among them is Mr Aftab Ansari, who has run a popular food joint in Mumbai's suburbs for more than 20 years.
“It shouldn't get more expensive than this. If prices keep rising, then the number of customers will fall, and (my) business will take a hit,” he told CNA.
India is a consumption-driven economy, and while it is benefiting from rising incomes, the World Bank has warned that growth from consumer spending could taper off as the effect of post-pandemic pent-up demand wears off.
As food inflation remains stubbornly high, spending particularly among low-income households could be constrained.

Headline inflation is expected to remain above 4 per cent until March this year, and average 4.8 per cent from April onward, according to economists.
GROWTH TO PERSIST
Their overall forecast points to a rosy outlook for India's growth, even as the World Bank warned in its latest report that the global economy is set for the worst five years of gross domestic product (GDP) growth in 30 years.
The body said it expects India to hold on to its top spot, with growth of 6.4 per cent forecasted in the next financial year starting this April, up from an estimated 6.3 per cent in the current financial year.
The Washington-based financial institution added that the growth will be driven by public investment and improved corporate balance sheets.

Financial experts also remain bullish on the outlook for India's economic growth.
“I'm pretty confident. My guess is that we'll be anywhere around 7 per cent, or even slightly higher if everything goes well globally as well. So I think it will surprise the consensus, which is much lower,” Mr Amar Ambani, executive director of Yes Securities, told CNA.
“There are many factors that are driving (the growth) and primarily the robustness is getting built … because there are so many cylinders firing.”
These efforts include India's digitisation efforts and capital expenditure by the government, he said.
However, they could still be hampered by a weak global environment, with factors such as extreme weather and economic pressures unleashed by the war in the Middle East and continuing conflict in Ukraine.
IMPACT OF UPCOMING ELECTION
Another risk factor that could impact the economy is India’s next general election, to be held from April to May this year.
Recent state elections, however, suggested that Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) remains popular across the country.

He is hence expected to win a third term, which would help with policy continuity in India, said analysts.
One business that has benefited from Mr Modi’s “Make in India” initiative aimed at promoting domestic manufacturing, is homegrown electronics brand Elista.
The firm plans to open a new factory in the south of the country in the next 12 months, with a target of doubling its revenue from last year.
“The buying capacity of the Indian consumer is increasing. And the second thing … is the international business,” its chairman and managing director Saket Gaurav told CNA.
“Now, India is being looked at as the alternate supplier of IT and consumer durables manufacturing for the rest of the world.”