United Nations increased the growth rate estimate for India, the reason is increase in investment and private consumption

United Nations: A United Nations official said that due to reduced foreign investment in China, India has become an alternative destination for many Western companies. Due to this, India's economic growth has improved "much better". The expert said this on the occasion of the United Nations revising India's gross domestic product (GDP) growth for 2024.

May 17, 2024 - 23:26
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United Nations increased the growth rate estimate for India, the reason is increase in investment and private consumption

The estimates for India's economic growth in 2024 have been increased by the UN from 6.2 percent to 6.9 percent. Strong public investment and tenacious private consumption are the key drivers of this. The country's growth forecast had previously been raised by the IMF as well. According to the United Nations, India is expected to grow at the fastest rate among major economies in this fiscal year, as confirmed in its mid-year update titled World Economic Situation and Prospects. Concurrently, India's growth estimates for 2024 have been raised from 6.5 percent to 6.8 percent by the IMF in its most recent outlook.

A UN official said the decline in foreign investment in China has made India an alternative destination for many Western companies. Due to this, India's economic growth has improved "much better". The expert said this on the occasion of the United Nations revising India's gross domestic product (GDP) growth for 2024.

Hamid Rashid, head of the Global Economic Monitoring Branch in the Economic Analysis and Policy Division of the United Nations Department of Economic and Social Affairs (UN DESA), told reporters here on Thursday, "India needs more investment coming into India from other Western sources." China is also benefiting because less and less foreign investment is going into China. India has become an alternative investment source or destination for many Western companies. I think India is benefiting from this.

He was giving information on the latest mid-year estimates of 'Global Economic Situation and Prospects 2024'. India's growth projections for the year 2024 have been revised. It has been estimated that the country's economy will grow at the rate of about seven percent this year.

"India's economy is projected to grow at 6.9 percent in 2024 and 6.6 percent in 2025, driven mainly by strong public investment and economic growth," data released on Thursday on 'Global Economic Situation and Prospects by mid-2024' said. Driven by flexible private consumption. "Although weak external demand will continue to weigh on merchandise export growth, exports of pharmaceuticals and chemicals are expected to grow strongly."

The latest mid-year data estimates economic growth for India at 6.9 percent, higher than the 6.2 percent growth forecast by the United Nations in January this year. There has been a slight increase in it for China. Now China's growth rate in 2024 is expected to be 4.8 percent, which was estimated to be 4.7 percent in January. China's growth rate is expected to decline from 5.2 percent in 2023 to 4.8 percent in 2024.

Muskan Kumawat Journalist & Writer