{"id":263973,"date":"2023-10-12T19:24:56","date_gmt":"2023-10-12T13:54:56","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=263973"},"modified":"2023-10-12T19:24:56","modified_gmt":"2023-10-12T13:54:56","slug":"good-do-better-for-india-to-be-the-fastest-growing-major-economy-isnt-enough","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/good-do-better-for-india-to-be-the-fastest-growing-major-economy-isnt-enough\/","title":{"rendered":"Good, Do Better \u2013 For India, to be the fastest growing major economy isn\u2019t enough"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article \u201cGood, Do Better \u2013 For India, to be the fastest growing major economy isn\u2019t enough. Real change needs 8% growth<\/strong>\u201d published in The Times of India <\/strong>on 12th<\/sup> October 2023<\/strong>.<\/p>\n

Syllabus: GS 3 \u2013 Indian Economy \u2013 Growth & Development<\/strong><\/p>\n

Relevance: <\/strong>measures needed for India to increase its growth rate.<\/p>\n

News: <\/strong>According to the latest forecast by the International Monetary Fund (IMF), India is the fastest growing major economy in the world.<\/p>\n

What are the key takeaways from the IMF’s forecast?<\/strong><\/h2>\n

As per the IMF,<\/strong> India is expected to grow at 6.3% in 2023-24, followed by China at 5%. India’s growth rate is expected to remain the same next year, while China’s growth rate is expected to slow down to 4.2%.<\/p>\n

The IMF also said that global growth has outperformed expectations of March-April 2022, due to the resilience of the Indian economy.<\/p>\n

However, while India has shown remarkable economic growth, it’s important to note that there is a substantial gap with China, as China’s GDP is approximately five times greater.<\/p>\n

Hence, to surpass China in contributing to global GDP, India would need to sustain an 8% growth rate for several years.<\/strong><\/p>\n

What are the challenges present with India in increasing its GDP growth rate?<\/strong><\/h2>\n

The Indian economy needs to address structural challenges<\/strong> to push up the trend in growth from about 6.5% to 8%.<\/p>\n

The government’s jobs data shows that a part of the labor force has gone back to agriculture, the sector with the lowest productivity.<\/p>\n

In 2022-23, agriculture’s share of the workforce was 45.8%, over three percentage more than 2018-19, while only 11.4% of the workforce was in manufacturing.<\/p>\n

This shift limits the potential for growth in private consumption, a critical part of the economy.<\/p>\n

What can be the way ahead?<\/strong><\/h2>\n

India needs to boost investment in traditional sectors like mining and utilities<\/strong>, which have a wider economic impact.<\/p>\n

This is important because the focus on tech and manufacturing has led to construction surpassing manufacturing in job creation, which is concerning.<\/p>\n

Hence, to close the economic gap with China and fulfill India’s geopolitical ambitions, a structural transformation is needed to<\/strong> have a greater impact on global growth.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cGood, Do Better \u2013 For India, to be the fastest growing major economy isn\u2019t enough. Real change needs 8% growth\u201d published in The Times of India on 12th October 2023. Syllabus: GS 3 \u2013 Indian Economy \u2013 Growth & Development Relevance: measures needed for India to increase… Continue reading Good, Do Better \u2013 For India, to be the fastest growing major economy isn\u2019t enough<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,8184,10496],"class_list":["post-263973","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-indian-economy","tag-times-of-india","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/263973","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=263973"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/263973\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=263973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=263973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=263973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}