​UN raises India’s 2024 growth rate to 6.9 pc; remains world’s fastest-growing large economy

United Nations: Indian economy’s growth rate projection for this year has been raised by 0.7 per cent to 6.9 per cent from the forecast made in January by the UN and it retains its position as the world’s fastest-growing large economy.

The better outlook is fueled by lower inflation, robust exports, and increased foreign investments, Hamid Rashid, the chief of the UN’s Global Economic Monitoring Branch, said on Thursday.

“The drivers (of higher projection) are very simple: inflation has come down significantly, and that means the fiscal position is not as constrained as in other countries,” he said at the release of the mid-year edition of the World Economic Situation and Prospects (WESP) report.

Exports, which is another element in the improved projection, have been “pretty robust” and India is also benefiting from more investments coming in from other Western sources while the flow to China is coming down, Rashid said.

“India has become an alternative investment source or destination for many Western companies,” he added.

Another factor benefiting India, he said, is the special import arrangement India has with Russia for oil that is lowering its cost, he said.

The WESP report also gave a positive picture of the employment situation, saying: “In India, labour market indicators have also improved amid robust growth and higher labour participation.”

It said that the women’s labour force participation has increased particularly in South Asia.

India’s growth projection for next year remains at 6.6 per cent, which was made in January.

Last year, the WESP report said, India’s economy grew by 7.5 per cent and in 2022 by 7.7 per cent when it received a big short-term boost coming out of the drastic Covid slowdown.

The report also revised the projection for the world economy this year to 2.7 per cent, an increase of 0.3 per cent from January.

“Most major economies have managed to bring down inflation without increasing unemployment and triggering a recession,” the report said adding a cautionary note, “However, the outlook is only cautiously optimistic as higher-for-longer interest rates, debt difficulties, and escalating geopolitical risks will continue to challenge stable and sustained economic growth”.

The developing economies on the whole are growing at a faster clip — clocking 4.1 per cent — than the developed economies which are expected to record only a 1.6 per cent growth rate this year.

However, the growth among developing countries is uneven, the WESP report stated.

While large developing economies like India, Indonesia and Mexico are benefiting from strong domestic and external demand, many African, Latin American and Caribbean economies are on a “low-growth trajectory” because of “lingering political instability”, higher borrowing costs and exchange rate fluctuations, it said.

China’s economy is projected to grow by 4.8 per cent this year, making it the second fastest-growing large economy.

The US economy is projected to grow by 2.3 per cent this year.

“Despite the most aggressive monetary tightening in decades, a scenario of hard landing of the United States economy has receded,” the report said.

Looking ahead, the WESP saw risks and opportunities in rapid technology changes.

“The breakneck pace of technological change — including in machine learning and artificial intelligence — presents new opportunities and risks to the global economy, promising to boost productivity and advance knowledge on the one hand, while exacerbating technological divides and reshaping labour markets on the other,” the report said.
IANS

Economic Survey 2023-24: Economy continues to expand, inflation largely under control

New Delhi: The Centre on Monday tabled the Economic Survey 2023-2024 in the Lok Sabha. The survey presented by Finance Minister Nirmala Sitharaman and prepared by the Economic Division under...

SBI hikes lending rates

Mumbai: The country’s largest lender State Bank of India (SBI) has raised its benchmark marginal cost of lending rate (MCLR) by 5-10 basis points with effect from Monday (July 15)....

India has potential to become world’s 2nd largest economy by 2031: RBI Dy Governor

Mumbai: Given the country’s innate strengths, it is possible to imagine India striking out into the next decade to become the second largest economy in the world not by 2048,...

Sensex closes at all-time high, tech stocks lead rally

Mumbai: Indian equity benchmarks closed in the green following a rally in IT stocks on Friday. At closing, the Sensex was 622 points or 0.78 per cent, at 80,519 and...

Banking sector witnessing a decade-high performance: RBI

New Delhi: As India aims to become the world's third largest economy soon, the banking sector is undergoing a decade-high performance in financial metrics, according to Swaminathan J, Deputy Governor...

Top-notch Saudi-Indian company launches its new website in Saudi Arabia

RIYADH: After months of hard work and dedication, Big City Solutions Company for Business Services is pleased to announce its new website (www.bigcitysolution.com) with the primary goal of creating a...

RBI fines Punjab National Bank for breach of rules

Mumbai: The Reserve Bank of India (RBI) said on Friday that it has imposed a penalty of Rs 1.32 crore on Punjab National Bank for non-compliance with regulations on ‘Loans...

RBI inks pact to link UPI with 4 ASEAN countries for instant cross-border retail payments

Mumbai: Reserve Bank of India (RBI) on Monday announced that it has now joined Project Nexus with the four ASEAN countries to create a platform to facilitate instantaneous cross-border retail...

RBI Chief sees India on path to steady 8 pc GDP growth

Mumbai: RBI Governor Shaktikanta Das sees India moving ahead towards an 8 per cent GDP growth trajectory on a sustained basis, driven by structural economic reforms such as GST. "If...

Indian economy to continue on growth track despite coalition govt: Ridham Desai

New Delhi: Global brokerage firm Morgan Stanley is optimistic about Indian economic growth despite the coalition government. Ridham Desai, MD of Morgan Stanley India, asserted that under PM Narendra Modi's...

Household consumption expenditure jumps in India as incomes rise

New Delhi: Household consumption expenditure on goods and services in both the rural and urban areas of India, which reflects the standard of living and well-being of the population, has...

India’s forex reserves at historic high of $651.5 bn, CAD to dip: RBI

Mumbai: With a lower trade deficit, robust services export growth and strong remittances, the current account deficit (CAD) is expected to have moderated in the January - March quarter of...

Read Previous

Sensex down 166 points, M&M gains over 6 pc

Read Next

UN body says aid delivery to Gaza ‘almost impossible’ amid intensified fighting

Leave a Reply

Your email address will not be published.

WP2Social Auto Publish Powered By : XYZScripts.com