Saturday, July 20, 2024

India: fastest-growing economy UN report

India retains its position as the world’s fastest-growing major economy, with a projected GDP growth of 6.2% in 2024, according to the ‘World Economic Situation and Prospects 2024′ report by the UN Department of Economic and Social Affairs. This growth is attributed to robust domestic demand and strong performance in the manufacturing and services sectors. The report highlights India’s resilience amid global economic challenges and emphasizes the country’s appeal to multinationals seeking alternative manufacturing bases.

The key points from the report include India’s strong investment performance in 2023, driven by government infrastructure projects and multinational investments. While global inflation eased from its peak in 2022, India is projected to experience a decline in consumer price inflation from 5.7% in 2023 to 4.5% in 2024, aligning with the Central Bank’s medium-term inflation target range of 2 to 6%. The report also notes India’s manufacturing Purchasing Managers’ Index, which outperformed in the third quarter of 2023 compared to other major economies. Additionally, India’s attractiveness to multinationals for supply chain diversification strategies is emphasized, contributing to the country’s economic momentum.

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