Recently, major financial institutions like the International Monetary Fund (IMF) and Deloitte have praised India's economic growth estimates. Top economists have said that rural consumption is playing an important role in India's GDP growth.

IMF estimates

The IMF has maintained India's growth rate at 7 percent in the current financial year 2024. This estimate shows the strong economic condition of the country. According to Deloitte, India's annual GDP growth rate is likely to be between 7 to 7.2 percent in the next financial year 2024-2025. This coincides with the estimates of the Reserve Bank of India (RBI), which has projected growth of 7.2 percent in FY 2025.

Increase in rural income

BJP national spokesperson Sanju Verma said that a recent survey by the National Bank for Agriculture and Rural Development (NABARD) shows that the average monthly income of rural families in India has increased by about 58 percent in the last five years. The sales figures during the festive season also make it clear that consumption has increased in rural areas. Verma said, “Rural India is writing the story of development.”

Control of inflation

Not just GDP growth, inflation is also going down. According to the RBI, retail inflation is projected at 4.5 percent for FY25, which is likely to ease further to 4.3 percent next year. According to the IMF, India's core inflation is expected to be 4.4 percent in FY25 and 4.1 percent in FY26.

Global economic scenario

The IMF estimates that the global GDP growth rate will be 3.2 percent in the calendar year 2024, while for China it is 4.8 percent. Inflation remains stable in Western countries. Verma said that the progress made in the field of rural consumption under the leadership of Prime Minister Modi is really commendable.

Thus, India's economic situation seems to be improving and there is scope for growth. Rural consumption and inflation under control are signs that the Indian economy is moving in a positive direction.