India Emerges as Fastest-Growing Economy Eyeing 8 Percent Growth - News

India’s growth amid global uncertainties and its emergence as the fastest-growing major economy have driven positive market sentiment. This growth rate is expected to be sustained in the medium term, attracting significant investor interest. Highlighting this rapid acceleration, Shaktikanta Das, Governor, Reserve Bank of India (RBI), mentioned last month that the country is at the threshold of a major structural shift, moving towards an annual growth rate of 8 percent.

In the past three years, the country’s average growth rate has been between 8.1 percent and 8.3 percent, the highest in the Asia-Pacific region. Experts predict that growth will exceed 7 percent in the short-to-medium term, supported by strong domestic demand. Global agencies also anticipate a 7 percent growth rate for at least the next three years, driven by factors such as a monsoon reviving rural demand and policy stability from the new government. 

D K Joshi, Chief Economist, CRISIL, commented that the country has emerged as the fastest-growing large economy with promising prospects in the medium term. He mentioned that the National Statistical Office (NSO) has revised its GDP growth estimate for 2023-24 to 8.2 percent. This is an increase from the earlier estimate of 7.3 percent in the first advance estimates. Joshi further expects that the GDP to grow at an average rate of 6.7 percent over the medium term.