January 5, 2024
The gross domestic product (GDP) in South Asia is projected to rise by 5.2% in 2024, primarily driven by India
GDP growth is expected to reach 6.2% in 2024, slightly lower than the 6.3% estimate for 2023
The projection for India's GDP further indicates an increase to 6.6% in 2025
UN Secretary-General Antonio Guterres emphasised the need for bold investments to drive sustainable development and climate action in 2024
India is anticipated to achieve a growth rate of 6.2% in 2024, as per the United Nations World Economic Situation and Prospects (WESP) 2024 report. This growth is supported by robust domestic demand and notable expansion in both the manufacturing and services sectors. The report highlights that the gross domestic product (GDP) in South Asia is projected to rise by 5.2% in 2024, primarily driven by India, which continues to be the world’s fastest-growing large economy.
The report specifies that India’s GDP growth is expected to reach 6.2% in 2024, slightly lower than the 6.3% estimate for 2023. This growth is attributed to strong domestic demand and robust growth in manufacturing and services. The projection for India’s GDP further indicates an increase to 6.6% in 2025. The report emphasises the resilience of private consumption and significant public investment as key factors sustaining India’s economic growth.
While the manufacturing and services sectors are anticipated to be key drivers of the economy, the report notes that erratic rainfall patterns may pose challenges to agricultural output. Despite this, India has consistently outperformed its peers in recent years, maintaining economic growth above 6%.
UN economists expressed optimism about India’s growth outlook in the near term. They highlighted the sustained fiscal support from the government and improvements in domestic consumption, household spending, and employment.
Experts pointed out India’s robust GDP growth rates from 2022 to 2025. They suggested that excessively rapid economic growth could risk overheating the economy, and he emphasised the importance of maintaining a stable playing field for businesses.
The report also addressed other economic indicators, such as consumer price inflation, which is expected to decelerate, and the labour market situation, which showed improvements in India despite remaining fragile in South Asia. The UN’s economic outlook for the global scenario suggests a slowing growth rate from 2.7% in 2023 to 2.4% in 2024, citing various challenges like high-interest rates, escalating conflicts, sluggish international trade, and increasing climate disasters. UN Secretary-General Antonio Guterres emphasised the need for bold investments to drive sustainable development and climate action in 2024.
Source: Economic Times