India a standout performer amidst sluggish global growth trends: India's Economic Affairs Secretary tells WB committee

Washington, Despite a challenging global scenario, India's economy has shown robust growth over the past year backed by sustained consumption and investment demand, a top Indian official told members of a World Bank committee here.

India a standout performer amidst sluggish global growth trends: India's Economic Affairs Secretary tells WB committee

The GDP growth estimate for the fiscal, which has been revised upwards from 7.3 per cent to 7.6 per cent in the second advance estimates, highlights the enduring strength and resilience of the Indian economy, India’s Economic Affairs Secretary Ajay Seth said while addressing the Development Committee meeting here on Thursday.

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“India grew above 8 per cent for three consecutive quarters of FY24, reaffirming its position as a standout performer amidst sluggish global growth trends,” Seth said.

He said that similar sentiments have been echoed by various agencies who have revised India’s fiscal 24 growth estimate closer to 8 per cent. India's proactive stance on reform and investment in sustainable growth avenues sets a benchmark for emerging economies.

The Indian delegation at the annual Spring Meeting of the International Monetary Fund and the World Bank is being represented at the official level this time. Union Finance Minister Nirmala Sitharaman is not attending the annual gathering of global financial leaders due to the ongoing Lok Sabha elections.

Seth told the Development Committee that India’s thrust on capex continued to crowd in private investment resulting in enhanced Gross Fixed Capital Formation at constant prices registering a growth above 10 per cent in FY24.

India's inflation outlook appears positive with headline and core inflation trending downwards, indicating a broad-based moderation in price pressures, he said.

Seth said that on the external front, the narrowing merchandise trade deficit and the rising net services receipts are expected to improve the current account balance in fiscal 2024.

To catalyse and democratise the Artificial Intelligence innovation ecosystem in the country, the Centre has approved the “India AI Mission” with a budget outlay of INR 103 billion for building computing infrastructure, developing indigenous AI capabilities, streamlining access to datasets, attracting AI talent, and financing AI start-ups.

“The Mission aims to establish a robust AI ecosystem through strategic programmes and partnerships across the public and private sectors. The focus on infrastructure and technology is expected to propel India to stay on the curve of technological innovation, consolidate and solidify its position in the global supply chain,” he said.

Observing that the manufacturing sector registered double-digit growth in Q3 of 24 fiscal years, driven by a surge in investment, improved investor confidence, and strong domestic demand conditions, Seth said the year also saw continued strong growth in services, led by non-contact-intensive services sectors.

Emphasising that India has the highest digital transactions globally with a share of 46 per cent of global real-time transactions in 2022, Seth noted that the monthly transactions for March 2024 stood at 13.44 billion totalling an amount of INR 19.78 trillion.

The volume of UPI online transactions witnessed a 54 per cent YoY growth in Q3 FY24, which can be attributed to convenience, security, increased financial flexibility, and avenues in ease of spending for consumers, he said.

“Today this increased mobile connectivity and its linkage with the bank accounts has become an integral part of India’s inclusive economic growth story with consumers, small traders, vendors, and vulnerable populations from the lowest rung of the society, being the key beneficiaries,” he said.

Seth told the Development Committee that reflecting India’s bright economic stature and sustained growth in the global economic landscape, the Indian capital market has remained one of the best performing among emerging markets in FY24.

“Thanks to a robust investment climate and technology-anchored transparent trading system, the Indian equity market has witnessed a considerable increase in the number of dematerialisation accounts in recent months,” he said.

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