India's Economic Growth Continues to Dampen
After strong year-over-year growth in 2023, the expansion of India's gross domestic product continuously shrank throughout 2024, resulting in 5.4 percent growth between June and September. This is the lowest quarterly figure since the final quarter of 2022, well below the growth rates of 6.5 percent projected by economists polled by Reuters and 6.8 percent estimated by Reserve Bank of India officials according to NDTV Profit.
Another Reuters report shows that this might be linked to a two-year low point in urban consumption due to rising food prices, while an analysis by Trading Economics highlights the lower output of the manufacturing and utility industries compared to the previous quarter as a likely culprit for slower-as-expected economic growth.
Even with a contraction of GDP growth, India is still projected to be one of the countries with the highest annual GDP growth rate worldwide. In its World Economic Outlook from October 2024, the International Monetary Fund puts India's 2024 GDP growth at seven percent, well ahead of other major so-called emerging markets like China.