India will achieve remarkable growth despite structural challenges

Doha, Qatar: India is one of the fastest growing economies in the world, and rapidly transforming into an engine of global growth. During the 2000 202...

Doha, Qatar: India is one of the fastest growing economies in the world, and rapidly transforming into an engine of global growth. During the 2000-2023, which includes the volatile years of the Global Financial Crisis and the Covid-pandemic, the average growth rate for the South-Asian giant was 6.5 percent.

This sustained performance pushed India to become the sixth economy in the world, representing 8 percent of the global economy. Given its size, a 6.5 percent growth rate for India adds 0.52 percentage points (p.p.) to global growth. 

This implies that India explains an important share of the 3.2 percent global growth expected in 2024, QNB said in its economic commentary.

First, high investment levels will boost aggregate demand and expand production capacity. An important part of this story is explained by the impulse given by the central and state governments to capital expenditures.

The central government’s budget for infrastructure has more than tripled from five years ago to $135bn for the 2025 fiscal year.