The UN’s World Economic Situation and Prospects report also said that although subdued external demand will continue to weigh on merchandise export growth, pharmaceuticals and chemicals exports are expected to expand strongly.In 2025, the economy is forecast to grow by 6.6%.
The report projects China’s GDP growth for 2024 at 4.8% and for next year at 4.5%, which makes India the fastest growing major economy.
The UN is the latest agency to raise India’s economic growth for the current fiscal year after scorching 8.4% growth in Q4 of 2023-24. The IMF has raised India’s GDP growth to 6.8% and has termed the country as a bright spot amid the backdrop of a challenging global economy.
RBI estimates GDP growth at 7% for 2024-25, while govt has projected it in the 7-7.5% range. Several indicators have pointed to the growth momentum being sustained in the months ahead.
The report said that several large developing economies – Indonesia, India, and Mexico – are benefiting from strong domestic and external demand. It also said that in India, labour market indicators have also improved amid robust growth and higher labour force participation.
The report said India’s govt remains committed to gradually reduce the fiscal deficit, while seeking to increase capital investment.
Consumer price inflation in India is projected to decelerate from 5.6% in 2023 to 4.5% in 2024, staying within RBI’s 2-6% medium-term target range and added that despite some moderation, food prices remained elevated in Q1 2024, especially in Bangladesh and India.
