Surge in manufacturing sector highlights Modi govt’s efforts: FM Sitharaman

New Delhi, May 31: Finance Minister Nirmala Sitharaman said on Friday that India’s GDP data showcases robust economic growth, which is the highest among the major economies of the world.

Also, she termed the 8.2 per cent growth for FY 2023-24 and 7.8 per cent growth for Q4 of FY 2023-24 as “remarkable".

“It is worthwhile to note that the manufacturing sector witnessed a significant growth of 9.9 per cent in 2023-24, highlighting the success of the Modi government's efforts for the sector. Many high-frequency indicators indicate that the Indian economy continues to remain resilient and buoyant despite global challenges,” the Finance Minister said.

“India’s growth momentum will continue in the third term of the PM Modi-led government,” she added.

The RBI’s annual report has also highlighted that India’s emerging sectors like renewable energy and semiconductors are expected to make rapid advances on the back of the recent initiatives taken by the government.

The interim Union Budget 2024-25, with an allocation of Rs 6,903 crore for semiconductor and display fabs, would contribute to making India a global hub for chip and electronics manufacturing, the report said.

Investments under the production-linked incentive (PLI) scheme are likely to gain further momentum going forward. These factors are expected to create new employment opportunities, improve labour incomes, and strengthen domestic demand, according to the report.