Report Highlights India's Unemployment Drop to 3.1% in 2023

However, the national savings of India jumped to 33.4 per cent of the GDP in 2023 from a mere 29.9 per cent the previous year, which was very significant. This number signifies that there is a remarkable emphasis on being more prudent financially and also, on the other hand, making investments.

India witnessed a fabulous turnaround in its labor market this year, with the unemployment rate falling to 3.1 per cent compared to the 7 per cent in the previous year. These developments in a positive direction are supported by the fact that strong policies by the government were in place to increase the number of employment opportunities. A report said that .

However, the national savings of India jumped to 33.4 per cent of the GDP in 2023 from a mere 29.9 per cent the previous year, which was very significant. This number signifies that there is a remarkable emphasis on being more prudent financially and also, on the other hand, making investments.

Advertisement

As per the Capgemini Research Institute's 'World Wealth Report 2024', the number of HNWIs in India surged 12.2 per cent in 2023 over the previous year to reach 3.589 million.

Aggregate wealth held by HNWIs in India rose by 12.4 per cent to $1,445.7 billion in 2023 from $1,286.7 billion the previous year. Now, this is a substantial increase, which talks about increasing prosperity in the hands of the affluent Indian population.

Advertisement

If one were to look at the larger APAC region, India, along with Australia, stands out with impressive growth in both HNWI wealth and population. India was the only country to report a growth rate of 12.4 per cent in HNWI wealth and a simultaneous 12.2 per cent increase in HNWI population on the back of a resilient economy and robust equity markets performance.

Reasons for the increase in wealth in both India and Australia, witnessed in strong performance in equity markets and a positive economic landscape for their countries, are shown here. India is particularly reflected to be the fastest growing economy in the last six quarters, driven by robust private consumption, while positive momentum in manufacturing and construction has supported the overall growth in economic activity.

Advertisement

Market capitalization in India had gained 29% over the past year after gaining 6% in 2022. A revival in capital expenditure, an improvement in the banking and credit market, and enhanced demand - whether in automobiles or power or gains in productivity as companies invest in digital technologies - were some of the reasons. 

Meanwhile, foreign portfolio investment (FPI) flows have witnessed a noticeable turnaround as net FPI inflows touch $24.9 billion as of December 6, 2023, compared to net outflows in the last two years. The resurgence indicates that investor confidence has been rekindled, and that positively reflects on the Indian economic outlook.

Advertisement

Read also | Sensex Surges by 692 Points, Nifty Ends Above 22,800: Market Highlights

Read also | Surging Past Apple: Nvidia's $3 Trillion Market Cap Fueled by AI Boom

Advertisement

Advertisement