By – Aditi Gupta
“The Indian economy is forecast to grow at a growth rate of 6.9 percent in the year 2024 and this growth rate will be 6.6 percent in 2025,” states the United Nations report.
The United Nations has revised its estimate of the Indian economy’s growth rate and projects that it would grow by almost 7% in 2024. The Indian economy is expected to grow substantially due to robust public investment and flexible private spending, according to the UN. The study titled ‘World Economic Situation and Prospects to Mid-2024’ got made official by the UN on Thursday.
As to the United Nations research, it is expected that the Indian economy will grow at a 6.9 percent growth rate in 2024 and 6.6 percent growth rate in 2025. According to the report, exports of pharmaceuticals and chemical products are expected to increase, although the export rate may stay low due to a lack of external demand. The United Nations updated its 2024 growth rate estimate for India from 6.2 percent to 6.9 percent earlier in January. According to the UN, India has profited from robust growth in both the service and industrial sectors as well as strong domestic demand. The United Nations’ prediction for 2025 remains unchanged, though.
The United Nations has modified its report and found that consumer price inflation in India declined from 5.6% in 2023 to 4.5% in 2024. This falls within two and six percent, which is the Reserve Bank’s target range. Other South Asian nations ought to experience a decrease in inflation this year compared to previous. In the first quarter of 2024, food prices are still high despite some reducing. The paper says that despite India’s rapid economic growth and enhancing labor force participation, labor market indicators have also improved. Through increased capital investment, the Indian government is trying to gradually reduce the fiscal deficit.
It is expected that the economies of the South Asian countries will continue to grow rapidly. The GDP of South Asia is predicted to increase by 5.8% in 2024 and 5.7% in 2025. This is less than the 6.2% growth rate projected for 2023, though. Regional growth rates will be influenced by rising energy costs, geopolitical unrest, and attacks on international maritime lanes in the Red Sea. In 2024, the world economy is projected to grow by 2.7%, which is 0.3% more than the January prediction. On the other hand, the global growth rate might reach 2.8% in 2025. In addition to the positive economic forecast for the United States, emerging economies such as Brazil, Russia, and India will be major players in the global economy.
