India to remain world’s fastest growing economy in 2024, driven by public spending, services sector

Financial experts also remain bullish on the outlook for India’s economic growth.

“I’m pretty confident. My guess is that we’ll be anywhere around 7 per cent, or even slightly higher if everything goes well globally as well. So I think it will surprise the consensus, which is much lower,” Mr Amar Ambani, executive director of Yes Securities, told CNA.

“There are many factors that are driving (the growth) and primarily the robustness is getting built … because there are so many cylinders firing.”

These efforts include India’s digitisation efforts and capital expenditure by the government, he said.

However, they could still be hampered by a weak global environment, with factors such as extreme weather and economic pressures unleashed by the war in the Middle East and continuing conflict in Ukraine.

IMPACT OF UPCOMING ELECTION

Another risk factor that could impact the economy is India’s next general election, to be held from April to May this year.

Recent state elections, however, suggested that Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) remains popular across the country.