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The Hindu
2 days ago
- Business
- The Hindu
Growing pains: Economic performance, Viksit Bharat
The data on India's economic performance in 2024-25, released on Friday, have something for everybody. Those with an optimistic outlook can rejoice at the seemingly robust growth in the fourth quarter. Pessimists can despair over the four-year low annual growth figure. The realist's assessment, however, is that there is cause for some restrained celebration, and more than a healthy dose of disappointment. The Q4 growth of 7.4% was considerably higher than what was expected for the quarter, and the fastest seen in an otherwise dismal financial year. The main drivers were the construction sector returning to double-digit growth, and the agriculture sector posting a strong showing. These are also two major employment drivers. Services, too, continued their steady and strong growth. The manufacturing sector, on the other hand, grew at just 4.8%, down from 11.3% in Q4 of the previous year. There is a reality check hiding in the aggregate numbers, as well. The GDP growth rate of 7.4% was achieved in large part due to a 12.7% growth in net taxes. This bump in tax collections provided a statistical boost without which growth in actual economic activity would have come in at around 6.8%. The much-hyped 'Maha Kumbh effect' on consumption expenditure also does not seem to have materialised. Growth in Private Final Consumption Expenditure in Q4 — the Kumbh quarter — came in at 6%, the slowest in five quarters. Capital formation, however, grew a robust 9.4% as the government finally sped up its sluggish capital investments. Government officials and Union Ministers have expressed their satisfaction at the 6.5% growth in 2024-25, the slowest since the pandemic, saying it is still the fastest among major economies, and not bad in the context of a 'growth-scarce' global environment. All of this is true. Yet, 'not bad' is not nearly good enough for India. The race is not with the rest of the world, but is an effort to keep pace with the country's growing requirements. The Modi government, with its sights set on a 'Viksit Bharat' by 2047, must be held to a higher standard in line with its aspirations. If, as the Economic Survey points out, Viksit Bharat by 2047 requires 'sustained economic growth of close to 8% every year for at least a decade', then India is decidedly moving very slowly, even if in the right direction. In his press conference, Chief Economic Adviser V. Anantha Nageswaran said India was entering a phase of low inflation and stable growth. Stability can be good, since it implies lower chances of growth slowing. Yet, it also implies growth is unlikely to accelerate significantly either. The government needs to consider whether this is truly a satisfactory situation for a transitioning economy.
New Indian Express
2 days ago
- Business
- New Indian Express
Holistic steps needed to bring communities together in Coastal Karnataka
The state government, earlier this week, set up a Special Action Force (SAF) to curb communal violence in Coastal Karnataka. It is a welcome move to improve policing in the region that has witnessed many revenge killings and communal flare-ups. But the SAF alone will not be enough to ensure lasting peace and communal harmony. There is a need for a holistic approach to strengthen the social fabric. By constituting the special force, the government has shown its intent and resolve to tackle the serious issues impacting the districts that are otherwise doing remarkably well in various indices. As per the latest Economic Survey, Bangalore Urban's Gross District Domestic Product (GDDP) is Rs 9,98,659 crore with 39.1% contribution to State GDP, followed by Dakshina Kannada with 5.4%; Bangalore Urban district per capita income is Rs 7,38,910 is the highest among all the districts, again followed by Dakshina Kannada at Rs 5,56,059 and Udupi at Rs 5,33,469. In the Human Development Index, industry, and services sectors, Dakshina Kannada is the second place after Bengaluru Urban. The coastal districts in the state are also known for their top-quality higher education institutions that attract students from different parts of the state, even the country. However, on the flip side, this region remains communally hyper-sensitive, and that could impact its developmental prospects. Frequent communal incidents bring a sense of fragility to peace in the region, requiring constant vigil to maintain it. Even the Government Order (GO) constituting the SAF cites the state police chief's recent letter expressing concern over an increase in communal incidents in Dakshina Kannada and Udupi districts, and the potential of smaller incidents quickly evolving into major challenges to maintain law and order.
The Print
4 days ago
- Business
- The Print
India's Q4 GDP growth beats estimates at 7.4%, FY 2024-25 annual projection at 6.5%
The Reserve Bank of India had projected 6.5 per cent GDP growth for the fiscal year 2024-25. According to NSO's second advance estimates, the country's economy was projected to grow at 6.5 per cent in 2024-25. New Delhi : As was widely expected, the Indian economy grew by 6.5 per cent in real terms in the recently concluded financial year 2024-25, Ministry of Statistics and Programme Implementation's official data showed on Friday. In 2023-24, India's GDP grew by an impressive 9.2 per cent, continuing to be the fastest-growing major economy. According to official data, the economy grew 8.7 per cent and 7.2 percent, respectively, in 2021-22 and 2022-23. The Ministry of Finance, in a report in March 2025, anticipated that Indian economy would achieve a growth rate of 6.5 per cent in 2024-25, despite considerable external headwinds. The Finance Ministry monthly report added that the performance of the economy in the past quarters was driven by strong agricultural and service sector performance on the supply side and a steady increase in consumption and core merchandise and services exports on the demand side. The official GDP growth data for the January-March quarter was also released today. The economy grew 7.4 per cent during the quarter. During the April-June, July-September, and October-December 2024 quarters, the country's economy, in real terms, observed a growth rate of 6.7 per cent, 5.6 per cent, and 6.2 per cent, respectively. In a projection on Thursday evening, Union Minister for Commerce and Industry Piyush Goyal said that India is set to remain the fastest-growing large economy in the world for the next 30 years. At the CII annual event, Minister Goyal said the country has maintained a steady growth rate of 6-7 per cent and aims to push it further to 8 per cent at constant prices. He noted that despite global uncertainties, India remains one of the best-performing emerging markets. This February, the World Bank said India will need to grow by 7.8 per cent on average over the next 22 years to achieve its aspirations of becoming a developed country by 2047. However, the World Bank asserted that getting there would require reforms and their implementation to be as ambitious as the target itself. To realise the vision of 'Viksit Bharat', a developed nation dream by 2047, India will need to achieve a growth rate of around 8 per cent at constant prices, on average, for about a decade or two, the Economic Survey document for 2024-25 tabled on January 31 asserted. India has made quite a turnaround, climbing the ladder of economic growth. This can be gauged from the 11th in 2013-14, India has positioned itself to become the fourth largest economy. Even as India has overtaken many countries in terms of the size of the economy over the past decade, the per capita income in India remains very low. In 2013, India was placed in the league of 'Fragile 5' economies. The term 'Fragile 5' was coined by a Morgan Stanley analyst and refers to a set of five emerging countries, including India, whose economies were not doing well. The other four countries were Brazil, Indonesia, South Africa, and Turkey. This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.
India Gazette
4 days ago
- Business
- India Gazette
India's GDP grew 6.5% in 2024-25, 7.4% in Q4: Official data
New Delhi [India], May 30 (ANI): As was widely expected, the Indian economy grew by 6.5 per cent in real terms in the recently concluded financial year 2024-25, Ministry of Statistics and Programme Implementation's official data showed on Friday. According to NSO's second advance estimates, the country's economy was projected to grow at 6.5 per cent in 2024-25. The Reserve Bank of India had projected 6.5 per cent GDP growth for the fiscal year 2023-24, India's GDP grew by an impressive 9.2 per cent, continuing to be the fastest-growing major economy. According to official data, the economy grew 8.7 per cent and 7.2 percent, respectively, in 2021-22 and 2022-23. The Ministry of Finance, in a report in March 2025, anticipated that Indian economy would achieve a growth rate of 6.5 per cent in 2024-25, despite considerable external headwinds. The Finance Ministry monthly report added that the performance of the economy in the past quarters was driven by strong agricultural and service sector performance on the supply side and a steady increase in consumption and core merchandise and services exports on the demand side. The official GDP growth data for the January-March quarter was also released today. The economy grew 7.4 per cent during the quarter. During the April-June, July-September, and October-December 2024 quarters, the country's economy, in real terms, observed a growth rate of 6.7 per cent, 5.6 per cent, and 6.2 per cent, respectively. In a projection on Thursday evening, Union Minister for Commerce and Industry Piyush Goyal said that India is set to remain the fastest-growing large economy in the world for the next 30 years. At the CII annual event, Minister Goyal said the country has maintained a steady growth rate of 6-7 per cent and aims to push it further to 8 per cent at constant prices. He noted that despite global uncertainties, India remains one of the best-performing emerging markets. This February, the World Bank said India will need to grow by 7.8 per cent on average over the next 22 years to achieve its aspirations of becoming a developed country by 2047. However, the World Bank asserted that getting there would require reforms and their implementation to be as ambitious as the target itself. To realise the vision of 'Viksit Bharat', a developed nation dream by 2047, India will need to achieve a growth rate of around 8 per cent at constant prices, on average, for about a decade or two, the Economic Survey document for 2024-25 tabled on January 31 asserted. India has made quite a turnaround, climbing the ladder of economic growth. This can be gauged from the 11th in 2013-14, India has positioned itself to become the fourth largest economy. Even as India has overtaken many countries in terms of the size of the economy over the past decade, the per capita income in India remains very low. In 2013, India was placed in the league of 'Fragile 5' economies. The term 'Fragile 5' was coined by a Morgan Stanley analyst and refers to a set of five emerging countries, including India, whose economies were not doing well. The other four countries were Brazil, Indonesia, South Africa, and Turkey. (ANI)
Time of India
4 days ago
- Business
- Time of India
India's GDP grew 6.5% in 2024-25, 7.4% in Q4: Official data
As was widely expected, the Indian economy grew by 6.5 per cent in real terms in the recently concluded financial year 2024-25, Ministry of Statistics and Programme Implementation's official data showed on Friday. According to NSO's second advance estimates, the country's economy was projected to grow at 6.5 per cent in 2024-25. The Reserve Bank of India had projected 6.5 per cent GDP growth for the fiscal year 2024-25. In 2023-24, India 's GDP grew by an impressive 9.2 per cent, continuing to be the fastest-growing major economy. According to official data, the economy grew 8.7 per cent and 7.2 percent, respectively, in 2021-22 and 2022-23. The Ministry of Finance , in a report in March 2025, anticipated that Indian economy would achieve a growth rate of 6.5 per cent in 2024-25, despite considerable external headwinds. The Finance Ministry monthly report added that the performance of the economy in the past quarters was driven by strong agricultural and service sector performance on the supply side and a steady increase in consumption and core merchandise and services exports on the demand side. The official GDP growth data for the January-March quarter was also released today. The economy grew 7.4 per cent during the quarter. During the April-June, July-September, and October-December 2024 quarters, the country's economy, in real terms, observed a growth rate of 6.7 per cent, 5.6 per cent, and 6.2 per cent, respectively. In a projection on Thursday evening, Union Minister for Commerce and Industry Piyush Goyal said that India is set to remain the fastest-growing large economy in the world for the next 30 years. At the CII annual event, Minister Goyal said the country has maintained a steady growth rate of 6-7 per cent and aims to push it further to 8 per cent at constant prices. He noted that despite global uncertainties, India remains one of the best-performing emerging markets. This February, the World Bank said India will need to grow by 7.8 per cent on average over the next 22 years to achieve its aspirations of becoming a developed country by 2047. However, the World Bank asserted that getting there would require reforms and their implementation to be as ambitious as the target itself. To realise the vision of ' Viksit Bharat ', a developed nation dream by 2047, India will need to achieve a growth rate of around 8 per cent at constant prices, on average, for about a decade or two, the Economic Survey document for 2024-25 tabled on January 31 asserted. India has made quite a turnaround, climbing the ladder of economic growth. This can be gauged from the 11th in 2013-14, India has positioned itself to become the fourth largest economy. Even as India has overtaken many countries in terms of the size of the economy over the past decade, the per capita income in India remains very low. In 2013, India was placed in the league of 'Fragile 5' economies. The term 'Fragile 5' was coined by a Morgan Stanley analyst and refers to a set of five emerging countries, including India, whose economies were not doing well. The other four countries were Brazil, Indonesia, South Africa, and Turkey.
