AN ECONOMY POISED FOR GROWTH

The World Bank has affirmed that GDP is projected to grow by 6.3% in 2023-24, while the average inflation rate is estimated to be 5.2% over the same period. The primary factors contributing to the downward trend in inflation include the easing of global commodity prices, a slower pace of currency depreciation, and a moderation in domestic demand.

Global uncertainties, slower consumption growth, and rising borrowing costs are likely to have a significant impact on the growth of the global economy. However, the Indian economy is anticipated to show resilience and continue its growth trajectory. 

A BURGEONING MANUFACTURING LANDSCAPE

India’s manufacturing sector plays a vital role in driving the country’s economic growth, making a significant contribution to the Gross Domestic Product (GDP). It constitutes approximately 15% of India’s GDP and remains the largest employer. At present, the Indian manufacturing sector is on a high growth trajectory. According to World Bank estimates, the manufacturing sector is projected to experience a growth rate of 6.8% in 2023-24, while the Purchasing Managers Index (PMI) has consistently remained above the threshold of 50 since September 2021, reflecting a stable growth trend in the sector.