India is forecast to surpass Japan and Germany as the world's third biggest economy in the next few years, as BBC has reported recently. It is because of the better-than-expected growth by a strong country's manufacturers. As has been said that with the sector expanding by 11.6% in the period.
Private consumption has risen up3.5 % that makes up almost two-thirds of the country's gross domestic product.
People's spending power was impacted last year due to high prices of staple foods such as onions.
That has led to the government bringing a number of steps to help control food price inflation.
In the recent years government spending has raised on infrastructure and incentives were being given to boost the manufacturing of phones, electronics, drones and semi-conductors to help India compete on the international market.
The government gave the greenlight to the construction of three semiconductor plants worth 1.26 trillion rupees by firms including Indian conglomerate Tata.
However, the agricultural sector continued to struggle because of weak monsoon rains. It accounts for about 15% of the $3.7trillion (£2.93tn) economy. Some farmers have been protesting to demand minimum crop prices.
The International Monetary Fund too expects India's economy to expand by 6.5% in 2024, compared with 4.6% for China.
China remains under growing pressure to unveil stimulus measures to support the world's second biggest economy. It is facing a number of challenges including a property market crisis, high youth unemployment and falling prices, economically deflation.
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