India’s economy to grow by 7 pc this year, attracting more investments than China: UN expert

PTC News Desk: An expert at the UN stated that although “less and less” foreign investment is flowing into China, India has demonstrated ‘very robust’ economic growth and has emerged as a viable investment destination for many Western corporations. The UN also raised upward the country’s GDP growth estimate for 2024.

As less and less foreign investment is moving into China, India is also benefiting from greater investments pouring into India from other Western sources. For many Western corporations, India has emerged as an alternative source of investment or as a destination.

Chief of the Economic Analysis and Policy Division of the UN Department of Economic and Social Affairs (UN DESA), Hamid Rashid, told reporters here on Thursday, “I think that is also benefiting India.”

He was giving a briefing on the World Economic Situation and Prospects 2024 mid-year update, which revised upward India’s growth estimates for 2024 and now projects the nation’s GDP to rise by about 7 per cent this year.

The World Economic Situation and Prospects as of mid-2024, which was published on Thursday, stated that strong public investment and resilient private consumption will be the primary drivers of India’s 6.9 per cent and 6.6 per cent growth rates in 2024 and 2025, respectively. Pharmaceutical and chemical exports are predicted to rise significantly, despite the fact that weak external demand will continue to hinder the growth of product exports.  

The 6.9 per cent GDP growth estimate for India in the mid-year report is an increase over the 6.2 per cent GDP prediction issued by the UN in January of this year.

Regarding the future of the Indian economy, Rashid stated, “I believe the drivers are very simple.” Inflation in India has sharply decreased. And that indicates that there is support for increasing growth on both the monetary and fiscal fronts, and that the fiscal position is less restricted than in other nations.

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