INDIA - Fastest Growing Economy Losing Steam?
Between July and September, India’s economy slumped to a seven-quarter low of 5.4%.
Economists attribute this to several factors. Consumer demand has weakened, private investment has been sluggish for years and government spending—an essential driver in recent years—has been pulled back. India’s goods exports have long struggled, with their global share standing at a mere 2% in 2023.
“All hell seems to have broken loose after the latest GDP numbers,” says economist Rajeshwari Sengupta. “But this has been building up for a while. There’s a clear slowdown and a serious demand problem.”
Finance Minister Nirmala Sitharaman paints a brighter picture. She said that the decline was “not systemic” but a result of reducing government spending during an election-focused quarter. She expected third-quarter growth to offset the recent decline. India will probably remain the fastest-growing major economy despite challenges like stagnant wages affecting domestic consumption, slowing global demand and climate disruptions in agriculture, Sitharaman said.
According to Deloitte, a consulting firm, over 50% of the world’s global capacity centers (GCCs) are now based in India. These centers focus on R&D, engineering design and consulting services, generating $46bn (£36bn) in revenue and employing up to 2 million highly skilled workers.
There are other confusing signals as well. India’s average tariffs have risen from 5% in 2013-14 to 17% now, higher than Asian peers trading with the US. In a world of global value chains, where exporters rely on imports from multiple countries, high tariffs make goods more expensive for companies to trade, making it harder for them to compete in global markets.
-www.bbc.com, 10 December 2024
Arno's Commentary
India prides itself as the world’s largest democracy. In 2024, it surpassed China to become the overall largest country in terms of population. Currently, India’s population stands at 1.45 billion.
One thing seems clear: India’s economy is destined for growth. It continues to be increasingly industrialized, and the government has not yet taken full advantage of the potential hidden within its vast population.
Our interest lies in the Church. According to reliable sources, the percentage of Christians has increased from 2.5% a decade ago to about 5.8% today.
Again, we are reminded that Jesus said: “I will build my church.”
For more information about the Church in India, contact Rev. John Ishmael at ishmael.john@gmail.com to receive his email newsletter.
Arno Froese is the executive director of Midnight Call Ministries and editor-in-chief of the acclaimed prophetic magazines Midnight Call and News From Israel. He has authored a number of well-received books, and has sponsored many prophecy conferences in the U.S., Canada, and Israel. His extensive travels have contributed to his keen insight into Bible prophecy, as he sees it from an international perspective.
