(MENAFN- Live Mint) "The United Nations Trade and Development (UNCTAD) projected that Indian economy's growth momentum will most likely decelerate in 2024 to 6.5% against the 6.7% growth recorded in the previous year.
The report states,“The expansion in 2023 was driven by strong public investment outlays as well as the vitality of the services sector, which benefitted from robust local demand for consumer services and firm external demand for the country's business services exports. These factors are expected to continue to support growth in 2024.”
Also read: IMF raises India FY25 GDP growth outlook to 6.8%Thus, the factors that assisted the economy's growth by in 2023 will help the economy achieve a similar growth rate in the fiscal year 2024-25. The latest report released on April 16, revised India's growth forecast by 0.3 percentage points.
Also read: Global economy is picking up steam but poorest countries are falling behind: IMFThe global trade body noted,“In the outlook, an increasing trend of multinationals extending their manufacturing processes into India in an effort to diversify their supply chains will also have a positive impact on Indian exports, while moderating commodity prices will be beneficial to the country's import bill,” it noted report stated the Reserve Bank of India (RBI) will most probably keep interest rates constant in the near term. Restrained public consumption spending will be offset by strong public investment expenditure, supporting India's growth, as per the report read: IMF Board Changes Lending Rules to Speed Up Debt RestructuringThe International Monetary Fund (IMF) also released a report on growth forecast on April 16. This report raised India's GDP growth projection for the financial year 2024-25 by 30 basis points to 6.8%. The IMF, in its update to the World Economic Outlook (WEO), attributed domestic demand for the projected growth rate read: India GDP expected to grow 8% and above in March quarter and FY24, says FM SitharamanGiven India's performance in the first nine months of FY24, other international bodies also revised their growth estimates. India's growth stood at 8.2% between April-December 2023, according to government data.
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