<h1>India's Economy Grows by 7.8% Year-On-Year, Driven by Capital Expenditure, Strong Demand, and Services Exports.</h1> India's economy grew by 7.8% year-on-year, surpassing many leading economies, according to the Chief Economic Adviser. The growth is driven by increased capital expenditure, strong consumption demand, particularly in rural areas, and robust services sector exports despite a global slowdown. New private sector investment projects reached a 14-year high in Q1 of FY2023-24. The government's focus on capital expenditure has encouraged private sector investment, positively impacting employment and income growth. Inflation remains controlled, and initiatives like PM GatiShakti and the Production-Linked Incentive schemes are expected to enhance manufacturing output.