'India's growth rate may be 6.5% in 2024', UNCTAD claimed in its report
Growth Rate: UNCTAD has said in its report that the growth rate in India is expected to continue increasing in 2024 also. Pointing to China, the report said that multinational companies are focusing on India for manufacturing to diversify their supply chains.
According to a United Nations report, the growth rate of India's economy is estimated to be 6.5 percent in 2024. The United Nations Conference on Trade and Development (UNCTAD) in its report released on Tuesday said India is expected to grow by 6.7 per cent in 2023 and 6.5 per cent in 2024, and is the world's fastest growing major economy. Will remain.
"Growth in 2023 was driven by strong public capital investment and services sector growth. The domestic market benefited from strong domestic demand for consumer services and strong external demand for business services exports," the report said.
These factors are expected to continue supporting growth in India in 2024, the report said. Pointing to China, the report said that multinational companies are focusing on India for manufacturing to diversify their supply chains.
"The growing trend of MNCs to diversify supply chains and expand their manufacturing processes in India will have a positive impact on the country's exports, while softening commodity prices will be beneficial for the country's import bill," the report said.
Last week, the flagship '2024 Financing for Sustainable Development Report: Financing for Development at a Crossroads' launched at the world body said investment in South Asia, especially India, remains strong. It is benefiting from growing interest from developed economies who look at the country (India) as an alternative manufacturing base as part of their supply chain diversification strategies.
The UNCTAD report said the Reserve Bank of India is expected to keep interest rates stable in the near term, while the curbs on public consumption will be offset by strong public investment spending.
The research notes that economic growth is still more muted in other South Asian nations. Three nations in the region, Bangladesh, Pakistan, and Sri Lanka, are presently requesting assistance from the IMF on the condition that they enact strict fiscal austerity and monetary policies. Low-income families are feeling the brunt of its effects. Global growth in 2024 is predicted to be 2.6%, a little less than that of 2.7% in 2023.
The report said that 2024 will be the third consecutive year in which the global economy will grow slower than before the pandemic. Earlier, the average rate of global growth during 2015 to 2019 was 3.2 percent. The UNCTAD report said the risks that threatened to significantly slow global economic growth in 2023 have not fully materialized.
The report said, 'Some economies, including big economies like China, India, Indonesia, Russia, America, escaped the financial crisis that occurred earlier this year.' As a result, the global economy grew at 2.7 percent, just 0.2 percent above the global recession threshold of 2.5 percent.
The report said China's economy is projected to grow by 4.9 percent in 2024, facing some headwinds such as external uncertainties, a problematic housing market, an underperforming labor market and lower consumption.
In its most recent version of the World Economic Outlook, which was published on Tuesday, the International Monetary Fund (IMF) stated that growth in India is expected to continue to be robust at 6.8% in 2024 and 6.5% in 2025. The impact of the expanding working-age population as well as the sustained strength of domestic demand are reflected in this growth rate.
