India's Economy Surges to 8.2% Growth, Poised to Become $4 Trillion Economy

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India's economic growth has hit a six-quarter high of 8.2%, surpassing economist predictions and solidifying its position as the world's fastest-growing economy. The Gross Domestic Product (GDP) growth in the quarter ending September was driven by strong performances in manufacturing and services, with manufacturing growth rising to 9.1% and services growth at 9.2%. Prime Minister Narendra Modi hailed the growth as 'very encouraging', attributing it to the government's pro-growth policies and reforms. Union Finance Minister Nirmala Sitharaman said the numbers underscore the Indian economy's momentum, driven by sustained fiscal consolidation, targeted public investment, and various reforms. The growth rate is expected to propel India to a $4 trillion economy by the end of the current financial year, with the country's GDP standing at $3.9 trillion as of March this year. Core inflation remains stable, and a benign food supply outlook is supported by timely rabi sowing and healthy reservoir levels. However, the nominal GDP growth rate of 8.7% for the quarter ending September and 8.8% for the first half of the fiscal year is lower than the 10.1% assumed in this year's budget. This could impact fiscal and revenue calculations, with corporate earnings growth averaging 8% over the last six quarters and tax collections growing at 2.7% thus far. Despite this concern, the overall growth trajectory remains positive, with the government and economists anticipating a faster real growth in the fiscal year 2025-26 than initially predicted. The Monetary Policy Committee (MPC) had projected an annual growth of 6.8% for 2025-26, but the actual numbers are likely to be higher, presenting a promising outlook for the Indian economy.