L’India predicts GDP growth 7.3% in 2023, news that comes as the world’s most populous democracy prepares for elections in 2024. If the numbers are accurate, India is the fastest growing emerging economy in the world.
This projection comes from National Statistical Officewhile Reserve Bank of India published a similar forecast in December.
India’s economy grew by 7.2% in 2022 and 8.7% in 2021 as it recovers from the Covid crisis (India suffered the third highest death toll on the planet). If this trend continues, predicts S&P Ratings, India will become the world’s third largest economy by 2030 it will surpass Germany and Japan.
Private consumption, which accounts for 58% of GDP, grew by 4.4%, up from 7.5% in 2022. However, public spending grew by 4% in 2023, up from just 0.1% last year.
The manufacturing sector also grew strongly in 2023, by 6.5%. Prime Minister Narendra Modi has been luring American and Western companies to increase investment in the country and driving them away China.
Apple, the world’s largest company, is particularly attracted to India as a fast-growing market. China recently enacted a ban on iPhones for government officials, and Chinese companies are stepping up competition.
However, India still faces significant social challenges. The Pro-capita GDP is equal $2,389ranked 143rd in the world and behind Congo, Angola and Ivory Coast.
Elections in 2024
India is the world’s most populous democracy and its elections are seen as one of the most important in 2024. Prime Minister Modi has announced that they will be held by May.
According to analysts interviewed by CNBC, India’s economic boom will guarantee Modi a third term in office.
Elections in India usually take several weeks to complete. Getting to the polling stations is often a difficult journey for rural people, and counting all the votes takes a long time and is often not completely accurate.
However, Modi has shown the world that India is ready to enter the world stage. Investment in the country is rising, while confidence in China is collapsing.
Modi wants to demonstrate this to the Indian population New Dilli will replace Peking. At the same time, he wants to include India under the military umbrella United Statesthough its allegiance to the US dollar is shaky at best.
GDP growth has so far proved Narendra Modi right and Delhi could overtake him sooner than expected.
Article published on Money.it international edition on 2024-01-08 13:00:00. Original title: India predicts massive GDP growth ahead of 2024 elections