Good times for the Indian Economy Ahead: In the latest report by UNCATD (UN Trade and Development), it was estimated that the Indian Economy will grow by 6.5% this year. The report was established on Tuesday, that which Indian Economy will continue to be the fastest growing in the world.
Multinational corporations diversifying their supply chains by expanding their manufacturing operations into India will boost Indian exports, which in turn would boost India’s GDP, which is expected to rise 6.5% in 2024, according to UN research.
In a study that was issued on Tuesday by the United Nations Trade and Development Agency (UNCTAD), it was said that India’s GDP increased 6.7% in 2023 and is projected to rise 6.5% in 2024, maintaining its position as the world’s fastest-growing major economy.
The report stated that India’s growth in 2023 was fueled by strong public investment and the services sector’s vitality, which reaped benefits from strong demand for consumer services both domestically and internationally. These factors are anticipated to keep driving growth in 2024.
The research also mentioned that, in an effort to diversify their supply chains away from China, corporations are putting more and more emphasis on India as a manufacturing base.
Investment in South Asia, and India in particular, is still robust, according to the international body’s major “2024 Financing for Sustainable Development Report: Financing for Development at a Crossroads” released last week.
It went on to say that multinational corporations are showing increasing interest in India as a potential alternative manufacturing base as part of supply chain diversification initiatives for developed nations, seemingly referring to China. This bodes well for India’s economy.
According to the UNCTAD research, interest rates are projected to remain unchanged in the near future by the Reserve Bank of India. The report also predicted that increased public investment expenditures would balance out constrained public consumption spending.
But other Southern Asian nations’ economies are growing at a more moderate pace. Restrictive monetary policies and fiscal austerity measures are imposed as a condition of three regional nations’ IMF programs; low-income people are disproportionately affected, the statement stated. These countries are Sri Lanka, Bangladesh, and Pakistan.
We anticipate global growth of 2.6% in 2024, which is little lower than 2.7% in 2023.
India’s GDP in current prices from 1987 to 2027 (Source).
According to the analysis, the global economy will continue to develop at a slower rate in 2024 compared to the average rate from 2015 to 2019 (3.2%). This trend will continue for the third year in a row.
The Report on the Indian Economy
According to the UNCTAD research, the dangers that were supposed to significantly dampen global economic development in 2023 never came to fruition.
The report went on to say that “some economies including large ones, such as China, India, Indonesia, the Russian Federation, the United States, among others escaped the financial trouble that loomed earlier in the year,” and that the world economy grew 2.7%, which is just 0.2 percentage point higher than the 2.5 percentage point threshold often associated with a global recessionary phase.
“We are now wasting this promising dynamic. Inflation remains at the center of policy talks, suggesting that the world’s economic difficulties can be alleviated by the projected monetary easing.” It went on to indicate that trade disruptions, climate change, slow development, underinvestment, and inequality are all becoming increasingly major problems.
Despite projections of 4.9% growth in 2024, the paper notes that China’s economy has been struggling owing to factors like foreign uncertainty, a sluggish property market, a lackluster labor market, and muted consumer spending.
In its most recent edition of the World Economic Outlook, which was released on Tuesday, the International Monetary Fund predicted that India’s growth would be 6.8 percent in 2024 and 6.5 percent in 2025. This robustness is attributed to the country’s rising working-age population and the continued strength of domestic demand. This news coincides with the UNCTAD report.
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