The United Nations has revised India’s growth projections for 2024, with the country’s economy now projected to grow about seven percent this year, driven mainly by strong public investment and resilient private consumption.
“India’s economy is projected to grow by 6.9% in 2024 and 6.6% in 2025, driven mainly by strong public investment and resilient private consumption,” said the World Economic Situation and Prospects to mid-2024 released on Thursday. “Even though weak external require will continue to weigh on merchandise export growth, exports of pharmaceuticals and chemicals are expected to expand strongly”. The mid-year update projected economic growth of 6.9% for India is higher than the 6.2% GDP forecast made by the United Nations in January this year. The UN World Economic Situation and Prospects (WESP) 2024 report that, launched in January, had said enlargement in India is projected to reach 6.2% in 2024 amid strong domestic demand and robust increase in the manufacturing and services sectors.
India’s GDP growth forecast for 2025 in January is unchanged at 6.6% in the latest assessment of the economic situation.
The update said consumer price inflation in India is projected to decline from 5.6% in 2023 to 4.5% in 2024, which will remain within the central bank’s two to 6% medium-term target range. Similarly, inflation rates in other South Asian countries declined in 2023 and are expected to decline further in 2024, ranging from 2.2% in the Maldives to 33.6% in Iran. Despite some moderation, food prices remained high in the first quarter of 2024, especially in Bangladesh and India.
