An 8-on-10 Performance

TODAY, INDIA IS THE world's fifth-largest economy by GDP, at $3.34 trillion, up from tenth place in T 2014. It grew at a phenomenal 16 percent in FY23 (18.4 percent in FY22) in nominal terms, belying forecasts that growth would slow down after the pandemic. India remains the only large economy to continue its economic pace. The April 2023 update of the World Economic Outlook predicts India to be the fastest-growing economy in FY24.

- Mohandas Pai & Nisha Holla

Increased stability in several macroeconomic variables lends to this positive outlook post-pandemic tax buoyancy continues at the Central level and in many states, growing at more than 20 percent YoY. Average monthly GST collections in FY23 was Rs 1.51 lakh crore. India also continues to strengthen its financial and banking governance. The manufacturing and construction sectors, which have strong feedforward effects into other economic sectors like materials consumption, employment and tax generation, are expanding with multiple population-scale projects. Fiscal deficit targets are also returning to the lower pre-pandemic levels. The nation continues to be a favoured destination for global investment and a significant component of most foreign investors' Asia allocations.

Driving Capex & Inclusive Growth

The Central government continues to drive significant capex, building on quantity and quality, as they have in successive Budgets for nearly a decade. The pace of highway construction has grown almost 300 percent in the last seven years total length has increased from 1,289 km in FY16 to 3,963 km in FY22. Rural road connectivity and coverage are now at 99 percent. A total of 400 high-speed Vande Bharat trains have been commissioned, of which 16 are already operational. Most Indians, especially in the rural areas, had probably not witnessed infrastructural development in their lifetimes before the NDA government's slew of projects.