India will continue to outshine peers in 2024, to grow at 6.2%: 8 takeaways from UN report

Robust domestic demand and strong growth in manufacturing as well as service sectors are expected to push India’s growth at 6.2 per cent in 2024, the United Nations said.

According to UN World Economic Situation and Prospects (WESP) 2024, India’s gross domestic product (GDP) is projected to increase by 5.2 per cent in 2024, getting fillip from fast expansion in India.

8 key takeaways from UN report

1 - “Indian economy again outperformed its peers, not just this year but the last few years,” Chief of the Global Economic Division Monitoring Branch, Economic Analysis and Policy Division (UN DESA) Hamid Rashid said

2 - India’s economic growth has consistently remained over six per cent and “we believe this will continue in 2024 and 2025 as well”

3 - India’s economic growth is projected to remain “strong” at 6.2 per cent in 2024 mainly supported by resilient private consumption and strong public investment. The country’s GDP is projected to increase to 6.6 per cent in 2025.

4 - India’s overall, domestic consumption is growing, household spending has grown, employment situation has improved quite a bit. “So, we are very optimistic about India’s growth outlook in the near term,” Rashid said

5 - Consumer price inflation in India is expected to decelerate from 5.7 per cent in 2023 to 4.5 per cent in 2024, staying within the 2-6 per cent medium-term inflation target range set by the Central Bank

6 - The global economic growth is projected to slow from an estimated 2.7 per cent in 2023 to 2.4 per cent in 2024, trending below the pre-pandemic growth rate of 3 per cent

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7 - Persistently high interest rates, further escalation of conflicts, sluggish international trade, and increasing climate disasters, pose significant challenges to global growth

8 - “The year 2024 must be the year when we break out of this quagmire. By unlocking big, bold investments we can drive sustainable development and climate action and put the global economy on a stronger growth path for all,” UN Secretary-General Antonio Guterres said.