New Delhi: In his Independence Day speech, Prime Minister Narendra Modi stated that the nation is on track to become the third-largest economy in the world through significant sectoral reforms. Echoing the sentiments, the International Monetary Fund (IMF) Deputy Managing Director, Dr. Gita Gopinath, predicted that the government will accomplish this goal by 2027.
India’s economy has grown to be the fifth largest in the world, and it is soon expected to rank among the top three global economic powers. This growth not only signifies India’s economic prowess but also has significant implications for the global economic landscape, potentially altering the dynamics of international trade and investment.
Gopinath claims that during the most recent fiscal year (FY24), India’s growth performed far better than anticipated due to a recovery in private consumption growth across all sectors, particularly in the rural economy.
From two-wheeler sales to fast-moving consumer goods (FMCGs), the overall consumption is surging. “With better monsoons come better harvests, and agricultural incomes go up,” she said in media reports.
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The Society of Indian Automobile Manufacturers (SIAM) has released its most recent data, which shows that 24,37,138 passenger cars, three-wheelers, two-wheelers, and quadricycles were produced overall in July. In July, the two-wheeler segment saw a respectable 12.5% gain over the same month the previous year.
However, despite challenges, the FMCG market in India continues to thrive. Marketing research firm Kantar Worldpanel projects that the FMCG industry will increase by 6.1% annually in FY 2024–2025 in the rural market, up from 4.4% in the previous year. This growth can be attributed to factors such as increasing disposable income, changing consumer preferences, and the government’s focus on rural development.
The analysis states that the current higher volumes in the urban sector could eventually match those in the rural market. The rural FMCG market is producing over half of the sector’s volume and value, making it more valuable to the industry than previously.
Gopinath emphasised the need for India to create millions of new jobs in the next five to six years, a prospect that holds promise for the nation’s economic future.
According to the IMF, India’s economic growth for FY25 is expected to increase by 7% from 6.8% in April. RBI Governor Shaktikanta Das states that India’s average growth rate over the last three years is 8.3 percent. They have provided a growth estimate of 7.2% for the current year, painting a promising picture of India’s economic future.
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—IANS
Photo: (Xinhua/Liu Jie/IANS)
