India’s economy sprang a surprise with an 8.4% surge in GDP growth during the third quarter
India is yet again seen as a silver lining amid the global slowdown as its GDP gains significantly, leaving countries like Germany, Japan, and the UK to continue as they drop down in GDP (PPP) rankings over the years.
The latest data show that India is keeping up its growth momentum as the world’s fastest-growing economy which is seen as a bright spot amid the global slowdown.
As of 2024, the Indian economy, when seen at PPP, is 3.6 times that of the UK, 2.1 times that of Japan, and 2.5 times that of Germany, according to research by the Delhi-based nonprofit Social Policy Research Foundation (SPRF).
GDP (PPP) means gross domestic product based on purchasing power parity. PPP allows us to understand and make comparisons between two countries about the price of the same goods and services in both countries.
The report mentions, “The share of the Indian GDP (PPP) as a percentage of the Global GDP at PPP has been significantly increasing, while that of the US, Japan, Russia and other countries have decreased.”
“A high PPP implies that a basic set of essential goods and services is cheaper inside India, for an Indian consumer, than the same basket would be for a consumer in Japan, Germany or the UK,” according to the report.
India’s economy sprang a surprise with an 8.4 percent surge in GDP growth during the third quarter (October-December 2023), as a result of which the country’s economic growth rate for the financial year 2023-24 is now estimated at a robust 7.6 percent, according to latest figures by the National Statistics Office.
In India, real GDP growth was at a six-quarter high in Q3 of 2023-24, powered by strong momentum, robust indirect taxes, and lower subsidies.
“The Indian economy remained resilient with a robust 7.6 percent growth rate of GDP in FY 2023-24 over and above 7 percent growth rate in FY 2022-23,” the Ministry of Statistics said.
According to the RBI’s monthly bulletin released earlier this week, the high visibility of structural demand and healthier corporate and bank balance sheets are likely to propel India’s growth going forward even as the global economy is losing steam.
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