India will achieve remarkable growth despite structural challenges – QNB

India will achieve remarkable growth despite structural challenges – QNB

Qatar National Bank (QNB) expected the Indian economy to maintain its robust growth trajectory despite some structural challenges.In its weekly commentary, QNB said, "India is one of the fastest growing economies in the world, and rapidly transforming into an engine of global growth. During the 2000-2023, which includes the volatile years of the Global Financial Crisis and the Covid-pandemic, the average growth rate for the South-Asian giant was 6.5 percent. This sustained performance pushed India to become the sixth economy in the world, representing 8 percent of the global economy. Given its size, a 6.5 percent growth rate for India adds 0.52 percentage points (p.p.) to global growth. This implies that India explains an important share of the 3.2 percent global growth expected in 2024."India has been able to achieve this performance in spite of significant structural obstacles. Firms and international institutions have pointed to excessive regulation and a burdensome bureaucracy, disproportionate trade and labor market restrictions, and high transaction costs. Even with these difficulties, India's strong growth momentum is expected to continue, and contribute to bring a large share of its population to higher standards of living. In 2000, GDP per capita was USD 442, and reached USD 2,500