The rapid growth in the manufacturing sector highlights the efforts of the Modi government: FM Sitharaman

Finance Minister Nirmala Sitharaman said on Friday that India’s GDP data shows strong economic growth, the highest among the world’s largest economies.

It also termed the growth of 8.2% in FY 2023-2024 and growth of 7.8% in the fourth quarter of FY 2023-2024 as “remarkable”.

“It is worth noting that the manufacturing sector has registered a significant growth of 9.9 per cent in 2023-24, highlighting the success of the Modi government’s efforts in this sector. Many high-frequency indicators indicate that the Indian economy remains resilient and vibrant despite global challenges,” the Finance Minister said.

“India’s growth momentum will continue in the third term of the government under the leadership of Prime Minister Modi,” she added.

The RBI annual report also highlighted that India’s emerging sectors such as renewable energy and semiconductors are expected to make rapid progress thanks to recent initiatives taken by the government.

The report said the Union Interim Budget 2024-25, which includes Rs 6,903 crore for semiconductor and display factories, would help make India a global chip and electronics manufacturing hub.

Investments under the production-linked incentive (PLI) scheme are likely to gain further momentum in the future. The report says these factors are expected to create new job opportunities, improve workers’ incomes and strengthen domestic demand.