Explained: How India Beats China By Becoming World’s Fastest-Growing Economy?

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India has overtaken China as the world’s fastest-growing major economy.It is likely to sustain real economic growth of more than 6% annually during the remainder of the decade, supported by sensible macroeconomic policies.In summary, India’s economic strength not only fuels its domestic development but also enhances its capacity to shape foreign policy and engage with the global community.

New Delhi (ABC Live): India’s strong medium-term economic growth outlook will enable its government to direct financial resources and diplomatic efforts toward managing the country’s complex security environment.

Prime Minister Narendra Modi and his ruling Bharatiya Janata Party (BJP) have dominated Indian politics since first coming to power in 2014. The BJP’s electoral dominance provides significant leeway for pursuing both domestic economic and foreign policy agendas. Here are some key points:

Economic Growth and Diplomacy:

India’s robust economic growth trajectory allows it to allocate resources strategically. As the country doubles its economic size over the next decade, it can consolidate its position as the world’s third-largest economy.

The high rates of economic growth have attracted international investors, giving India space to engage with the rest of the world on its own terms.

A geopolitical website The Diplomat writes “As the international order undergoes significant changes, India’s policy continues to evolve while Pakistan’s remains largely static. This explains why the rest of the world stood behind India in the most recent crisis, and odds are that it will continue to stand behind India in future crises. Pakistan will continue to find itself isolated in the international arena until it reconsiders its strategic outlook and policies, and credibly demonstrates that its policies are evolving to align with the interests of the community of nations.”

Budget Priorities:

Further RANE, the Global platform on international issues endorsed that, “In the last interim budget before the 2024 elections, the Modi government prioritized infrastructure investment over traditional pre-electoral tax cuts and social spending.

The budget allocated over $130 billion for physical infrastructure, representing a more than 10% annual increase. This growth-friendly macroeconomic policy is made possible by the BJP’s electoral dominance.”

Medium-Term Outlook:

India has overtaken China as the world’s fastest-growing major economy.It is likely to sustain real economic growth of more than 6% annually during the remainder of the decade, supported by sensible macroeconomic policies.In summary, India’s economic strength not only fuels its domestic development but also enhances its capacity to shape foreign policy and engage with the global community.

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