UN revises India's 2024 growth forecast to 6.9%
India’s growth to 6.9% in 2024 from 6.2% projected earlier, the United Nations said in its latest World Economic Situation and Prospects report’s mid-year update.
“India’s economy is forecast to expand by 6.9 per cent in 2024 and 6.6 per cent in 2025,29 mainly driven by strong public investment and resilient private consumption,” the UN Department of Economic and Social Affairs said.
It noted that even as the government brings down its fiscal deficit, it will continue to increase capital investment.
The government has set a target to reduce the fiscal deficit to 5.1% in FY25 from 5.8% in the previous year.
The international agency noted that external conditions will likely weigh on merchandise export growth, and pharmaceuticals and chemicals are expected to expand strongly in the year.
Although the UN pointed out that global trade is expected to recover in 2024, it highlighted “persistent geopolitical tensions in the Middle East and disruptions in the Red Sea, and escalating cost of freight continue to pose challenges to global trade.”
India’s merchandise exports declined 3% in FY24 compared with the previous year.
The revision follows similar revisions by other agencies on the back of strong performance in the previous year.
IMF projects India to grow 6.8% in FY25, whereas ADB raised India’s FY25 growth forecast to 7%.
For 2025, the UN kept the forecast unchanged at 6.6%.
On the inflation front, the agency was also optimistic, as it predicted inflation to fall closer to the Reserve Bank of India’s target
