New Delhi, December 29, 2023: India’s economic engine is roaring! The Finance Ministry’s half-yearly review revealed robust performance, surpassing growth projections and painting a bright picture for the future. Here are the key highlights:
Growth Beyond Expectations:
- Real GDP surged 7.7% in the first half of FY24, exceeding the government’s estimate of 6.5%.
- Strong domestic demand, fueled by a 4.5% rise in private consumption expenditure, propelled this impressive growth.
- India emerged as the fastest-growing major economy in H1, attracting positive attention from both domestic and international agencies.
Inflation on the Decline:
- Core inflation is steadily decreasing, while fuel inflation remains negative, leading to an overall downward trend in headline inflation.
- RBI projects inflation to average 5.4% in FY24, offering stability and investor confidence.
- Food inflation remains elevated, particularly in some vegetables, pulses, spices, and fruits, requiring focused attention.
Job Market Flourishes:
- Urban unemployment rate dropped from 7.2% to 6.6% in Q2, reflecting improving employment opportunities.
- Net payroll additions under EPFO saw a significant 18.9% year-on-year increase in H1, indicating widespread job creation.
- Lower exit rate from EPFO further underscores increased job security and employee satisfaction.
Revenue Collection Strong:
- Net tax revenue jumped 11.2% to ₹13 lakh crore between April and October 2023.
- Robust growth in corporate (17.4%) and personal income taxes (over 30%) reveals strong economic activity.
- Consistent high GST collections throughout FY24 reflect the bustling economic atmosphere.
Trade Deficit Reduced:
- Despite an 8.8% contraction in merchandise exports, the net service trade increased by 15.5%.
- Overall trade deficit nearly halved to $39.9 billion in H1 compared to the previous year’s $75.3 billion.
Looking Ahead:
India’s economic prospects remain optimistic, with strong domestic demand, declining inflation, and a thriving job market fueling growth. With the government addressing issues like food inflation and trade balance, the future appears bright for the Indian economy.
