The Indian economy is expected to experience strong growth despite the grim outlook for the world economy


   The Indian economy is expected to maintain its strong growth with the help of solid urban consumption and government spending. During the July-September quarter, Asia’s third-largest economy is expected to rise by 6.8% as compared to earlier this year, as per a Reuters poll. On Thursday, India will release its GDP data quarterly.

  India is considered the brightest spot globally, while China, the second-biggest economy in the world, has slowed down, and several Western countries are flirting with recession.

  The poll’s consensus forecast is much better than the Reserve Bank of India’s prediction of 6.5% for the quarter, but still lower than the 7.8% growth in India’s economy in the previous quarter.

  As per Rahul Bajoria, the Barclays economist, “the construction and services sectors have experienced robust growth.” He further said that domestic demand continues to be an important economic driver of activity as external demand remains weak.

  Around 60% of India’s GDP is derived from private consumption. Throughout the three months of the quarter, the growth in domestic passenger aviation traffic exceeded around 20%, and urban consumption such as passenger sales increased by over 38%.

  During the nation’s festival season, strong consumption in urban centers was also shown by the record online sales of e-commerce companies like Walmart-owned Flipkart and Amazon.

  On Wednesday, Ajay Seth, the Economic Affairs Secretary of India, said, “India’s economy is expected to have ‘good numbers’ for the September quarter.

  During the months of April and September, the Indian government spent 49% of its capital expenditure budget of $120.01 billion (Rs. 10 trillion).

  Further, JP Morgan’s Sajjid Z. Chinoy said, “We had expected the real estate sector and government capex spending to drive growth.”

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