India fastest growing economy: INR stable since Oct 2022, forex reserves 4th highest in the world

India has surpassed the 2nd quarter GDP growth targets of IMF as well as RBI with astounding 7.6% rate when the other emerging and developed economies are showing moderation to contraction.

In a session at the Rajya Sabha spanning three days, Union Finance Minister Nirmala Sitharaman asserted that India’s second-quarter growth stands as the highest globally, solidifying its position as the fastest-growing economy. Contrary to the contractions witnessed by the 3rd and 4th largest economies, Japan and Germany, India maintains a significant growth rate of over 7%, showcasing its resilience and economic prowess.

Quashing allegations of a lack of economic debate, Sitharaman referenced past discussions and emphasized the substantial growth across sectors. She underscored the success of initiatives like Make in India and schemes by Prime Minister Modi, with the manufacturing sector contributing a noteworthy 13.9% to the overall economy.

The Purchasing Managers Index (PMI) for November, standing at 56, indicates expansionary territory, affirming sustained growth. In contrast to developed economies experiencing contractionary manufacturing PMI, India’s manufacturing sector remains robust.

Rupee (INR) has lost less than 1% of its value this year, hovering at ~83 against USD since Oct 2022.

Furthermore, Minister Sitharaman highlighted India’s merchandise exports, which saw a commendable 6.21% increase, reaching $33.57 billion in October. As a testament to the country’s economic strength, the forex reserves surged by $2.538 billion to reach ~$598 billion by the week ending November 24, according to the Reserve Bank of India (RBI). In October 2021, the country’s foreign exchange kitty had reached an all-time high of $645 billion.This positive economic outlook aligns with projections, with S&P anticipating India to become the third-largest global economy by 2030.