In the first quarter of the current fiscal year, India’s gross domestic product (GDP) increased by a double-digit 13.5 per cent, despite the fact that major world economies are struggling and the enormous Chinese economy is expected to slow down. The Narendra Modi administration’s meticulously calculated fiscal and monetary responses to the pandemic that struck the nation in March 2020 deserve praise.
According to government officials and experts, India’s success may be attributed to the Modi government’s emphasis on protecting the poor through the PM Gareeb Kalyan Yojana, cheap loans for MSMEs, increased public funding for capital expenditures, and encouraging private investments.
“Modi government’s capital expenditure during Q1 of FY23 stands at ₹1.75 lakh crore, which is equivalent to capital expenditure in the whole financial year of 2013-14 during the Congress-led United Progressive Alliance (UPA) era,” one of them said.
India’s Private Final Consumption Expenditure (PFCE) in the first quarter of the current fiscal year is 22 lakh crore, up 10 per cent from pre-pandemic levels of 20 lakh crore. This shows that household consumption has continued to rise despite pandemic disruptions.
The growth projection for the major economies in the Organisation for Economic Co-operation and Development (OECD) quarterly GDP database is 0.4 per cent for China, 1.7 per cent for Germany, 1.7 percent for the United States, 4.2 per cent for France, 4.6 per cent for Italy, and 4.8 per cent for Canada for the period of April to June 2022. China’s harsh zero Covid lockdowns, along with significant issues in the banking and real estate sectors, are to blame for the country’s economic slump. With its wolf warrior diplomacy against Taiwan and the QUAD nations, the Xi Jinping dictatorship has increased the economic damage, leaving recipient countries of Beijing’s Belt Road Initiative (BRI) including Sri Lanka, Pakistan, Myanmar, and Kenya in financial ruin.
According to data, the manufacturing PMI [Purchase Managers’ Index] reached an eight-month high of 56.4 in July 2022, helped by increases in output and new business orders. A PMI services result of 55.5 in July 2022 indicates that services activity continued to grow well and remain in the expansionary zone. A PMI reading above 50 denotes an increase in economic activity in these sectors.
