According to the latest United Nations World Economic Situation and Prospects (WESP) 2024 report, India's economy is poised to outshine its global counterparts, projecting a robust growth rate of 6.2% in 2024. The report underscores India's resilience, fueled by strong domestic demand and substantial expansion in both the manufacturing and services sectors.
The South Asian region's Gross Domestic Product (GDP) is anticipated to surge by 5.2% in 2024, primarily propelled by India's remarkable growth, solidifying its position as the world's fastest-growing large economy. While the projected growth for 2024 is slightly lower than the estimated 6.3% for 2023, the report emphasizes the sustainability of India's economic momentum.
Rashid, a key figure in the report, acknowledged India's relatively high inflation but highlighted the government's strategic approach, avoiding substantial interest rate hikes. This, in turn, facilitated sustained fiscal support without significant fiscal adjustments or retrenchment.
The report accentuates the positive trajectory of India's economic landscape, citing growing domestic consumption, a notable increase in household spending, and a considerable improvement in employment conditions. The optimism surrounding India's short-term growth outlook is palpable, indicating a favorable economic environment.
Responding to inquiries about potential hindrances to India's economic growth, Shantanu Mukherjee, Director of the Economic Analysis and Policy Division, dismissed concerns by pointing to the GDP growth rates from 2022 to 2025—7.7%, 6.3%, 6.2%, and 6.6%. These figures, he argued, do not suggest any substantial impediment to India's economic progress, further underscoring the positive trajectory outlined in the UN report.
