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Defying all expectations, the Indian economy registered an impressive 8.4 per cent growth in the third quarter (October-December) of the ongoing fiscal. After the robust growth in the third quarter, economists are now projecting that India may achieve 7.6 per cent growth in 2023-24 financial year. If the Indian economy can match this prediction, it will be a great achievement considering the fact that most major economies of the world are currently struggling to register notable growth. This makes India the only country which has successfully confronted all major challenges and hardships to the economy during the last few years. As a matter of fact, the Indian economy has made a remarkable recovery after contracting to nearly 25 per cent during the pandemic. While most countries are still struggling to bring their economies back on track, the Indian economy continues to surge ahead, defeating all odds.
This unexpected high growth rate has been largely made possible by the manufacturing sector, which has recorded an impressive 11.6 per cent growth. At the same time, the mining and quarrying, and construction sectors have registered 7.5 and 9.5 per cent growth respectively, which is indicative of good times in coming days. It must be noted that sluggish growth in the secondary sector has remained a concern for quite some time now as it was failing to reciprocate the growth registered in the tertiary sector. Furthermore, as the manufacturing sector provides more employment than the service sector, it is creating unemployment issues, leading the country towards ‘jobless growth.’ Thus, the turnaround of the manufacturing sector has been a welcome relief as it registered mere 4.5 per cent growth in the same quarter only a year ago. It is hoped that the manufacturing sector will continue to surge ahead after the prolonged slump and revitalise the economy further.
However, there is no place for complacency as India’s primary sector has struggled to stay afloat during this quarter. Agriculture, the main component of the primary sector, has recorded a dismal 0.8 per cent growth in the third quarter. This is a worrying trend which should be addressed immediately as poor growth in agriculture will bring significant problems to the country. Despite the impressive showing by the manufacturing and service sectors, it must be remembered that the Indian economy is mainly an agrarian economy. A substantial percentage of the Indian workforce is engaged in agriculture. So, poor growth in agriculture will severely impact the livelihoods of a large section of the population. Moreover, it will also increase the price of food grains. Thus, in order to keep food prices under control and to provide employment, growth in the agriculture sector is a must. It is unwise to sweep the issue under the carpet by blaming poor rainfall this monsoon. All stakeholders must identify ways to tackle the erratic behaviour of nature. Otherwise, ensuring inclusive growth in India will remain a distant dream.