Indian economy expected to grow 6.7% in 2024

Supported by resilient domestic demand, Indian economy will remain a bright spot with an expected 6.7% growth in the calendar year 2024, according to a UN report which said higher interest rates and weaker external demand will continue to weigh on investment and exports this year for the country.
India’s economy, the largest in South Asian region, is expected to expand by 5.8% in 2023 and 6.7% in 2024 (calendar year basis), supported by resilient domestic demand, said the World Economic Situation and Prospects as of mid-2023 released on Tuesday. However, higher interest rates and weaker external demand will continue to weigh on investment and exports in 2023, it said. Inflation in India is expected to decelerate to 5.5% in 2023 as global commodity prices moderate and slower currency depreciation reduces imported inflation.
Estimates for India’s economic growth in the mid-year assessment remained unchanged from the projections made in World Economic Situation and Prospects 2023 report launched in January this year. The flagship report issued in January said that India’s GDP is projected to moderate to 5.8% in 2023 as higher interest rates and global economic slowdown weigh on investment and exports.
Chief of the Global Economic Monitoring Branch, Economic Analysis and Policy Division, UN Department of Economic and Social Affairs, Hamid Rashid had said at a press conference that India is a bright spot in the world economy. In response to a question by PTI on the trajectory of Indian economy, Rashid said India remains a bright spot. Our projection for India hasn’t changed since January and we see many positives, including the inflation has come down significantly.