India’s Second-Half GDP Growth Expected to Surge: DEA Secretary

Stronger Economic Momentum Anticipated in H2

India is poised to witness robust economic growth in the second half of the financial year, according to the Department of Economic Affairs (DEA) Secretary. This optimistic outlook is bolstered by improved macroeconomic indicators, ongoing structural reforms, and favourable global trends.

H1 Growth Sets a Solid Base

India’s economy demonstrated resilience in the first half of the fiscal year, with steady growth fueled by government spending, private investment, and export performance. The DEA Secretary highlighted that the government’s pro-growth measures, including infrastructure spending and Production Linked Incentive (PLI) schemes, are yielding tangible results.

“Despite global headwinds, India’s economy has shown remarkable stability. The foundations laid in the first half will translate into stronger performance in the coming months,” the Secretary remarked.

Drivers of H2 Growth

Several factors contribute to the optimistic forecast for the second half:

1. Rising Consumption: With the festive season boosting consumer demand and rural consumption recovering due to a favourable monsoon, spending levels are expected to rise.
2. Industrial Output Revival: Recent data indicates a resurgence in manufacturing and industrial activity, driven by increasing domestic demand and supportive policy measures.
3. Improved Global Conditions: While uncertainties remain, the easing of supply chain disruptions and recovery in major export markets offer growth opportunities.

Challenges on the Horizon

While the outlook is positive, challenges such as inflationary pressures, geopolitical uncertainties, and uneven global growth could pose risks. Policymakers are keeping a close watch on these factors to ensure sustained momentum.

The DEA Secretary emphasized that the government’s continued focus on fiscal discipline and reforms would play a crucial role in navigating these challenges.

A Step Toward $5 Trillion Economy

The robust growth trajectory aligns with India’s long-term vision of becoming a $5 trillion economy. “The next six months will be pivotal in achieving our growth targets. It’s not just about numbers but the quality and sustainability of growth,” the Secretary concluded.