From economic growth and technological strides to diplomatic successes and social welfare reforms, India made significant progress in 2024. As the year ends, here is a look back at the country’s transformative journey this year, with achievements that solidify India’s standing globally.
1 India Remains the Fifth Largest Economy
The country’s economy continued its robust recovery in 2024, with India recording 7% gross Domestic Product (GDP) growth, making it the world’s fastest-growing major economy. The country continues to be the fifth-largest economy in the world, quickly catching up with fourth-placed Germany.
2 FDI Crosses $ 1 Trillion (2000-24)
India’s strong performance was driven by a surge in Foreign Direct Investment (FDI), which crossed a record $ 1 trillion ( One lakh crore) between April 2000 and September 2024. This growth was further supported by record exports of $ 778 billion, reinforcing India’s position in the global market. More than 69% of these inflows were recorded in last decade (April 2014-September 2024).
3 Strengthening Foreign Relations
Amid ongoing Russia-Ukraine war, PM Narendra Modi became the first Indian PM to visit Ukraine, while President Droupadi Murmu became the first Indian head of the state to visit Fiji. PM Modi also received the Order of Excellence from Guyana. India hosted the third edition of the Voice of the Global South Summit, attended by the representatives from 100 nations, continuing its global influence build up in the G20 summit in 2023.
India also forged key partnerships, including a free trade agreement with Iceland under the European Free Trade Association (EFTA), and a bilateral investment treaty with UAE. India was re-elected to the UN Peacebuilding Commission.
4 Foreign Tensions
India managed to resolve several regional conflicts, notably with the Maldives, where diplomatic efforts have alleviated tensions. However, its relationship with Canada remains strained, largely due to differences over issues related to the Sikh diaspora and broader geopolitical concerns.
India has been in ongoing discussions with Bangladesh over the rise in violence against Hindus, a minority group in the country. The relationship between India and Nepal also faced a setback when Nepal released new currency notes that featured a map including disputed territories claimed by both countries. This move escalated tensions between the two neighbouring countries.
5 Infrastructure and Connectivity
India constructed an average of 27 km of new roads every day, drastically improving connectivity within and between regions. Tap water reached 79% of Indian households as per Bharat Progress Report 2024 compiled by a news agency. This expansion marks a fivefold increase in access to clean water over the past five years. In a major boost to regional connectivity, the Udhampur-Srinagar-Baramulla rail link was completed, enhancing transport in the Jammu and Kashmir region.
6 Defence and Security
The Ministry of Defence was allocated Rs 6.22 trillion, its highest budget to date, up by 4.79% from the previous financial year. The aim was to modernize equipment and manufacture locally. The year 2024 saw the successful test of the first long-range hypersonic ballistic missile significantly bolstered India’s defence readiness. In addition, India secured a $ 3.5 billion drone deal with the USA, strengthening bi-lateral ties.
India’s security situation also improved, with the disengagement of Indian and Chinese forces in Ladhak after four years of tension, signaling a potential de-escalation.
7 Welfare Schemes for Women
The year 2024 was also a year of significant progress in social welfare and women’s empowerment. The Union budget allocated Rs 3 trillion to women’s schemes. The year also saw Lok Sabha, nine States and 1 Union Territory elections where all the parties promised welfare schemes for women. The number of women tax filers rose by 25%, while over 1.1 million women became “Lakhpati Didis”, boosting financial independence and contributing to the broader economy.
8 Stock Market Roller Coaster
In the first half of 2024, India’s stock market indices Nifty 50 and Sensex posted an impressive 10.5% gain, reflecting strong momentum. However performance faltered in the 2nd half, especially in last quarter, which was driven by heavy selling from foreign portfolio investors (FPI), concerns over high valuations, a slowing Indian economy, weak urban consumption geopolitical tensions in West Asia, and continuing Russia-Ukraine conflict.
Despite the recent setbacks, India remains well-positioned for growth stories for the next decade. This optimism is driven by strong macroeconomic stability, aided by the government’s focus on inflation control and fiscal consolidation, as well as India’s decreasing reliance on oil imports. India is expected to be among best-performing emerging markets in 2025, with earnings growth projected to rise by 18 to 20% annually through 2030.
9 Economic Slowdown amid Food Inflation
The July-September quarter saw India’s GDP rate fall unexpectedly to 5.4%, its slowest pace in last 7 quarters, while inflation remains well over 4%. As per RBI’s indication this should normalize by first quarter of 2025. Despite the challenges posed by inflation, the RBI decided to keep its key interest rate unchanged in December. However, it also made a significant move by reducing cash reserve ratio for banks for first time in four years, effectively easing monetary conditions in response to the slowing economic growth.
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Anil Malik
Mumbai, India
30th December 2024