India is expected to sustain its growth momentum at 6.5% in 2024, according to a report released by the United Nations Conference on Trade and Development (UNCTD).
The report underscores India’s resilience amidst global economic challenges, citing a growth rate of 6.7% in 2023. It attributes this strong growth to several factors, including significant public investment outlays and the dynamic performance of the services sector.
The services sector, in particular, thrived due to robust local demand for consumer services and strong external demand for India’s business services exports.
An encouraging trend highlighted in the report is the growing interest of multinational corporations in expanding their manufacturing operations in India. This strategic move aims to diversify supply chains and is projected to positively impact Indian exports. Additionally, moderating commodity prices are expected to improve the country’s import bill, contributing to economic stability.
The report anticipates that the Reserve Bank of India will maintain its current monetary policy stance in the near term, keeping interest rates unchanged. Moreover, while public consumption spending may remain restrained, strong public investment expenditures are expected to sustain the growth trajectory.
Looking at the broader Asian region, economic growth is forecasted to reach 4.0% in 2024, slightly lower than the 4.1% recorded in 2023. Despite this moderation, Asia continues to be a significant driver of global economic activity, with India’s growth story serving as a beacon of hope amidst wider economic uncertainties.
(ANI inputs)