The minister further revealed that India recorded a significant growth rate of 7.6 percent in the July-September quarter, surpassing all other countries.
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NEW DELHI: Finance Minister Nirmala Sitharaman has said that India emerged as the fastest-growing economy in the world during the second quarter when many other large economies contracted.
While addressing the winter session of Parliament on Thursday, the finance minister emphasized the substantial progress made by the Indian economy under the leadership of Prime Minister Narendra Modi, noting that India’s economy has risen from the tenth largest in 2014 to the fifth largest economy in 2023.
The minister further revealed that India recorded a significant growth rate of 7.6 percent in the July-September quarter, surpassing all other countries. “During the July-September quarter, the third and fourth largest economies of the world contracted. Germany contracted by 0.4% and Japan contracted by 2.1%. Other emerging economies like Vietnam grew by 5.3%, Malaysia by 3.3% and Thailand by only 1.5%,” Sitharaman said while reiterating that India’s 7.6% growth in the second quarter is quite a significant number.
The minister said the manufacturing sector is significantly contributing to the economy because of government’s “Make in India” initiative and various production-linked incentive (PLI) schemes. She highlighted that the manufacturing sector witnessed its highest growth of 13.9% in Q2FY24.
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She also drew attention to the Purchasing Managers Index (PMI), which registered 56 in November and has been in expansionary growth trajectory for more than 29 consecutive months. She said even the developed economies including the USA are showing contractionary PMI numbers.
“For the USA, it is 50 in October and 49.4 in November, for Canada, 48.6 and 47.7… Even the Eurozone collectively (was at) 43.1, 44.3, and China 50.7 and 49.5,” Sitaraman stated Addressing concerns regarding global demand slowdown, the finance minister revealed that India’s exports continued to demonstrate resilience with a year-on-year growth of 9.43 percent in October 2023, amounting to $62.26 billion.
Sitharaman further emphasised that despite Western economies experiencing a decline in consumption and demand, India’s exports remained robust. Furthermore, India exceeded expectations by recording a 6.21% rise in merchandise trade, while the World Trade Organization (WTO) had predicted a mere 0.8% growth.
Sitharaman also highlighted significant progress in tax collection, noting a growth rate of 21.82% in direct tax collection during the current year. Additionally, monthly goods and services tax (GST) collections stabilised at Rs 1.6 trillion, signaling positive economic growth.
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Sitharaman highlights progress in tax collection
Sitharaman highlighted progress in tax collection, noting a growth rate of 21.82% in direct tax collection during the year. Monthly GST collections stabilised at `1.6 trillion, signaling positive economic growth, she said.
