Introduction: The United Nations Conference on Trade and Development (UNCTAD) has released a report projecting India’s economic growth at 6.5% in 2024, slightly down from 6.7% in 2023.
Highlights of the UNCTAD Report:
- Drivers of Growth:
- Robust public investment outlays.
- Increasing local demand for consumer services.
- Rising external demand for business services exports.
- Multinational Investments: Increased interest from multinationals to expand manufacturing in India, diversifying supply chains, and benefiting exports while reducing the import bill.
Global Growth Projections:
- Global Economy: Projected to grow at 2.6% in 2024, up from 2.5% earlier.
- European Struggles: Germany and Italy face weak economic activity, industrial slowdowns, and fiscal crises.
- American Slowdown: Growth expected to slow down, with Argentina facing severe inflation and Brazil impacted by external pressures.
- Africa’s Growth: Projected at 3.0% in 2024, up from 2.9% in 2023, with major economies like Nigeria, Egypt, and South Africa underperforming.
- South Asia: Bangladesh, Pakistan, and Sri Lanka are under IMF programs requiring tight monetary and fiscal policies, impacting low-income households.
- China: Expected to grow by 4.9% in 2024, facing external uncertainties, a poorly performing labor market, and low consumption.
Additional Information:
- IMF Projections: Raised India’s growth projection to 6.8% for FY 2024-25, up from 6.5% in January.
- ADB Projections: Projected India’s GDP growth at 7% for FY 2024-25, up from 6.7%.
- World Bank Projections: Forecasted India’s GDP growth at 6.6% for FY 2024-25.
- Morgan Stanley: Revised India’s GDP growth forecast to 6.8% for FY 2024-25, up from 6.5%.
About UNCTAD:
- Established: 1964
- Headquarters: Geneva, Switzerland
- Secretary General: Rebeca Grynspan
- Member States: 195
The report underscores the resilience of the Indian economy amidst global challenges, driven by strong public investments and growing demand for services, while highlighting the need for continued strategic investments and economic reforms.
Login with Google