UNCTAD projected India's GDP growth slip to 6.5% in 2024

Utkarsh Classes Last Updated 19-04-2024

UNCTAD projected India's GDP growth slip to 6.5% in 2024

Report 4 min read

According to the United Nations Conference on Trade and Development (UNCTAD), the Indian economy is projected to experience a slowdown in growth momentum in 2024. The projected growth rate is 6.5%, which is slightly lower than the 6.7% recorded in the previous year.

Key highlights of report

According to a recent report, India’s economic growth in 2023 was due to the strong public investment outlays and the robust services sector.
These factors are likely to continue supporting the growth of the country's economy in the fiscal year 2024-25.
The report also revised India’s growth forecast by 0.3 percentage points, which was released on April 16.
The report stated that the increasing trend of multinational companies shifting their manufacturing processes to India will have a positive impact on Indian exports. Additionally, the moderating commodity prices will also be beneficial to the country’s import bill.
The report also indicated that the Reserve Bank of India (RBI) will most likely keep interest rates constant in the near term.
Despite restrained public consumption spending, strong public investment expenditure will support India's growth, as per the report.
The International Monetary Fund (IMF) also released a report on growth forecast on April 16, which raised India’s GDP growth projection for the financial year 2024-25 by 30 basis points to 6.8%.
The IMF attributed domestic demand for the projected growth rate, considering India's performance in the first nine months of FY24, where the country's growth stood at 8.2% between April-December 2023, according to government data.

UN Conference on Trade and Development (UNCTAD)

UNCTAD is a permanent intergovernmental organization established by the United Nations General Assembly in 1964.
Its headquarters are located in Geneva, Switzerland, with additional offices in New York and Addis Ababa.
Although it reports to both the UN General Assembly and the Economic and Social Council as part of the UN Secretariat, it maintains its own membership, leadership, and budget.
Rebeca Grynspan from Costa Rica made history by becoming the first female and Central American to hold the position of UNCTAD's secretary-general, which is a part of the United Nations Development Group.