• Invest
    Investment Suite
    Stocks
    Mutual Funds
    Future and Options
    IPO
    Exchange Traded Funds
    Commodity
    Stockcase (Stock Baskets)
    Currency
    Non Convertible Debentures
    Sovereign Gold Bond
    Exclusive
    NRI Account
    Private Client Group
    Features
    SipIt
    MTF
    Investment Suite
    Exclusive
    Features
  • Platform
    Product Suite
    Kotak Neo App & Web
    Nest Trading Terminal
    NEO Trade APIs
    Features and Tools
    MTF
    Securities Accepted as Collateral
    Margin Requirements
    Payoff Analyzer
    Calculators
    SIP Calculator
    Lumpsum Calculator
    Brokerage Calculator
    Margin Calculator
    MTF Calculator
    All Calculators
    Product Suite
    Features and Tools
    Calculators
  • Pricing
  • Research
    Research Calls
    Long Term calls
    Short Term calls
    Intraday calls
    Derivatives calls
    Pick of the week
    Top Monthly Picks
    Research Reports
    Fundamental Research Report
    Technical Research Report
    Derivative Research Report
    Research Calls
    Research Reports
  • Market
    Stocks
    Market Movers
    Large Cap
    Mid Cap
    Small Cap
    Indices
    Nifty 50
    Bank Nifty
    FinNifty
    Nifty Midcap India
    VIX
    All Indian Indices
    Mutual Funds
    SBI Mutual Funds
    HDFC Mutual Funds
    Axis Mutual Funds
    ICICI Prudential Mutual Funds
    Nippon India Mutual Funds
    All AMC's
    IPO
    Upcoming IPO
    Current IPO
    Closed IPO
    Recently Listed IPO
    Stocks
    Indices
    Mutual Funds
    IPO
  • Learn
    Resource
    Market Ready
    Kotak Insights
    Infographic
    Podcast
    Webinars
    Youtube Channel
    Quarterly Results
    Investing Guide
    Demat Account
    Trading Account
    Share Market
    Intraday Trading
    IPO
    Mutual Funds
    Commodities
    Currency
    Futures & Options
    Derivatives
    Margin Trading
    Events
    Budget 2024
    Muhurat Trading
    Share Market Holiday
    Market Outlook 2024
    Resource
    Investing Guide
    Events
  • Partner
    Business Associates
    Fund Expert
    Kotak Connect Plus
    Startup connect
  • Support
    FAQs
    Circulars
    Bulletins
    Contact Us
    Forms Download
    Get your Statement

India’s Economic Strength and Global Impact: Outlook 2024

  •  3 min read
  • 0
  • 19 Sep 2024
India’s Economic Strength and Global Impact: Outlook 2024

Amidst a challenging global landscape, India has emerged as an economic and geopolitical powerhouse in 2024. The country's economic growth trajectory has gained international attention, and several prestigious rating agencies and financial institutions have predicted a positive outlook.

India’s economic strength can be gauged from these forecasts:

  • The International Monetary Fund (IMF) has raised India’s growth forecast to 7% for FY 2024-25 from 6.8% from its January 2024 prediction
  • The United Nations has raised India’s 2024 growth forecast to 6.9% from 6.2%
  • The Reserve Bank of India, in its June monetary policy, raised the real GDP forecast for FY 2024-25 to 7.2% from the earlier 7%

While the numbers may vary across institutions, they all convey the same message. India is well and truly on its path to economic prosperity.

The underlying factors contributing to India’s economic growth are:

  • Robust domestic demand

India's domestic demand has remained robust, leading to a significant increase in private consumption. During the third quarter of FY24, private consumption increased by 3.5% compared to the same period in the previous year, as per Deloitte . Also, there has been an increasing demand for luxury and premium goods as compared to basic ones.

  • Spur in investment activities

Private investments have also witnessed robust activities growing by 10.6% year-over-year in Q3 of FY24 . This indicates a strong revival in the private capex cycle and the government's focus on infrastructure development, reflected in higher budget allocation for the sector over the years.

The Government of India's initiatives to liberalise foreign investments and boost exports are further expected to fuel investments and the economy.

  • Growth of the manufacturing sector

Over the years, the Government of India has undertaken several initiatives, such as Make in India and PLI schemes, to boost the manufacturing sector. Its endeavour to push towards ‘Atmanirbhar Bharat’ has significantly boosted domestic manufacturing capabilities.

The global impact of India's growing economy was evident last year when the country successfully assumed the presidency of G20. It showed the country's diplomatic finesse and economic clout. Successfully leading the G20 has enhanced India's influence in global affairs. It has positioned the country as a key player in shaping international policies and addressing global challenges.

India's economic growth has also helped it maintain a balance between two economic superpowers - the USA and Russia. When the USA imposed various economic sanctions on Moscow following the Ukraine War, India's economic prowess and political diplomacy ensured that it continued to trade with Russia, importing crude oil without facing major flak from the West.

Wrapping it up

With continued reforms, India is expected to become the third-largest economy in the world in the next three years and reach $7 trillion by 2030 . The government's policy push is expected to solve the challenges India is likely to face in this journey and promote inclusive growth.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.

Did you enjoy this article?

0 people liked this article.

What could we have done to make this article better?

Enjoy Zero brokerage on ALL Intraday Trades
+91 -

personImage
Enjoy Zero brokerage on ALL Intraday Trades
+91 -