Updated January 5th, 2024 at 15:14 IST
India projected to grow at 6.2% in 2024, outshining peers: UN report
The UN report specifies that India's GDP is expected to increase by 6.2% in 2024, slightly lower than the 6.3% estimate for 2023
India GDP Growth: The United Nations World Economic Situation and Prospects (WESP) 2024 report predicts that India will continue to outperform its peers, projecting a growth rate of 6.2 per cent in 2024. The report, launched on Thursday, highlights India's robust domestic demand and strong growth in manufacturing and services sectors as key drivers.
India's growth trajectory
The report specifies that India's GDP is expected to increase by 6.2 per cent in 2024, slightly lower than the 6.3 per cent estimate for 2023. It emphasises the resilience of private consumption and robust public investment as the main factors supporting India's economic growth. The UN projects a further increase in India's GDP to 6.6 per cent in 2025.
Factors contributing to India's economic strength
Chief of the Global Economic Division Monitoring Branch, Hamid Rashid, commended India's consistent economic growth, stating that it has consistently remained over six percent. He expressed optimism about India's growth outlook in the near term, attributing it to growing domestic consumption, improved employment situations, and sustained fiscal support from the government.
Risks and challenges
While discussing potential risks, Director of the Economic Analysis and Policy Division, Shantanu Mukherjee, highlighted that some risks are more global in nature. Factors such as India's vulnerability to climate change and its dependence on agriculture were mentioned. Mukherjee also acknowledged the government's recent modifications to tax collection systems as a positive development.
Inflation and labour market
The report forecasts a deceleration in consumer price inflation in India from 5.7 per cent in 2023 to 4.5 per cent in 2024. It notes that despite improvements in some countries, the labour market situation in South Asia remained fragile in 2023. In India, labour market indicators showed improvement, with increased labour force participation and declining unemployment rates.
Global economic outlook
The UN's global economic outlook suggests a projected slowdown in global economic growth from 2.7 per cent in 2023 to 2.4 per cent in 2024, falling below the pre-pandemic growth rate of three percent. While acknowledging the better-than-expected performance in 2023, the report highlights persistent challenges such as high-interest rates, conflicts, sluggish international trade, and climate disasters.
(With PTI inputs.)
Published January 5th, 2024 at 14:53 IST