Diwali drives market growth amid 7.5% economic surge

India's Diwali festivities are energizing market momentum, with anticipated high consumer spending and e-commerce activity projected to add to the country's economic growth.

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Retailers expect record-breaking sales, especially as Diwali shopping peaks, aligning with the World Bank's revised forecast for India's 7.5% GDP growth in 2024.

Festive demand is crucial for sectors like retail, automotive, and consumer goods, as consumer confidence returns post-COVID. This surge could counteract recent economic slowdowns and contribute significantly to India's trajectory as the world's fastest-growing economy.

The World Bank report predicts that South Asia will remain the fastest-growing region globally, with an estimated growth rate of 6.1% by 2025. Amidst the challenging global scenario, India has emerged as an essential economic and geopolitical force. Actions in the coming year can lay the foundation for India to become the world's thirdlargest economy within the next five years and a developed nation by 2047, setting examples in inclusive, sustainable growth, digital development, and climate action.

India has served as a critical growth engine for the world, contributing 16% to global growth in 2023. With a growth rate of 7.2% in the fiscal year 2022-2023, it had the second-highest growth rate among G20 nations and was nearly double the average growth of emerging market economies. India's efforts in maintaining stability and implementing structural reforms have contributed to its resilience in the face of global challenges. Investments in infrastructure and connectivity through projects like the Bharatmala Highway Program, Sagarmala for portbased development, and the Smart Cities Mission are transforming the landscape and playing a crucial role in economic growth.