What are the factors contributing to the growth of the Indian economy

Demographic advantage: India has a young and growing population, which provides a large workforce and consumer base that contributes to economic growth.
Market potential: The sheer size of the Indian market with a population of over 1.3 billion people offers immense opportunities for domestic and foreign businesses.
Policy reforms: The government has implemented various economic reforms such as the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code (IBC), and the Make in India initiative, which have improved ease of doing business and attracted investment.
Infrastructure development: Investments in infrastructure, such as roads, railways, airports, and digital connectivity, have improved the efficiency of industries and facilitated trade.
Technological advancements: India's IT sector has emerged as a global leader, contributing significantly to economic growth. The country's growing start-up ecosystem and investment in innovation also drive the economy.
Improving financial system: Reforms in the banking sector, such as the recapitalization of banks and the implementation of the Insolvency and Bankruptcy Code, have strengthened the financial system and supported economic growth.

These factors contribute to the Indian economy outperforming its peers and projecting a growth rate of 6.2% in 2024, according to the United Nations.

Answered a year ago

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