Indian Economy News

UN revises India's 2024 economic growth projection upwards to nearly 7%

The United Nations has revised upwards India's growth projections for 2024, with the country's economy now forecast to expand by close to 7% this year, mainly driven by strong public investment and resilient private consumption.

The World Economic Situation and Prospects as of mid-2024, released Thursday, said India's economy is forecast to expand by 6.9% in 2024 and 6.6% in 2025. Although subdued external demand will continue to weigh on merchandise export growth, pharmaceuticals and chemicals exports are expected to expand strongly. The 6.9% economic growth projections for India in the mid-year update is an upward revision from the 6.2% GDP forecast made by the UN in January this year.

The UN World Economic Situation and Prospects (WESP) 2024 report that was launched in January said that growth in India was projected to reach 6.2% in 2024, amid robust domestic demand and strong growth in the manufacturing and services sectors. The projection in January for India's GDP growth for 2025 remains unchanged at 6.6% in the latest assessment of the economic situation. The update said that consumer price inflation in India is projected to decelerate from 5.6% in 2023 to 4.5% in 2024, staying within the central bank's 2 to 6% medium-term target range. In India, labour market indicators have also improved amid robust growth and higher labour force participation. India's government remains committed to gradually reduce the fiscal deficit, while seeking to increase capital investment.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.